Case Law[2024] ZASCA 130South Africa
Jooste NO and Another v Pretorius and Others (695/2023) [2024] ZASCA 130; [2024] 4 All SA 659 (SCA); 2025 (3) SA 95 (SCA) (1 October 2024)
Supreme Court of Appeal of South Africa
1 October 2024
Headnotes
Summary: Law of trusts – removal of trustee – provision in trust deed empowering trustees to adopt resolution forcing trustee to resign – subject to Trust Property Control Act 57 of 1988 – destructive conduct by trustee – continued support of trust by donor imperilled – beneficiaries prejudiced – resolution by trustees requiring resignation of trustee valid.
Judgment
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## Jooste NO and Another v Pretorius and Others (695/2023) [2024] ZASCA 130; [2024] 4 All SA 659 (SCA); 2025 (3) SA 95 (SCA) (1 October 2024)
Jooste NO and Another v Pretorius and Others (695/2023) [2024] ZASCA 130; [2024] 4 All SA 659 (SCA); 2025 (3) SA 95 (SCA) (1 October 2024)
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sino date 1 October 2024
FLYNOTES:
CIVIL LAW – Trusts –
Removal
of trustees
–
Provision
in trust deed empowering trustees to adopt resolution forcing
trustee to resign – Concerns about respondent’s
administration of trust and management of farm – Compelling
reasons for her removal and she was treated fairly –
Decision to replace respondent was not taken arbitrarily –
Removal of respondent as trustee was plainly in interests
of trust
and its beneficiaries – Trust Property Control Act 57 of
1988, s 20(1).
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case No: 695/2023
In the matter between:
TERSIA
JOOSTE NO
FIRST
APPELLANT
JENS LIEVENS
NO
SECOND
APPELLANT
and
JANA
ANNELISE PRETORIUS FIRST
RESPONDENT
JANA
ANNELISE PRETORIUS NO
SECOND
RESPONDENT
RHINO
PRIDE FOUNDATION
THIRD
RESPONDENT
MASTER
OF THE HIGH COURT
FOURTH
RESPONDENT
JOHANNESBURG
Neutral
citation:
Jooste NO and Another v Pretorius
and Others
(Case no 695/2023)
[2024]
ZASCA
130
(
1 October 2024
)
Coram:
SCHIPPERS, NICHOLLS, MOTHLE and
UNTERHALTER JJA and BAARTMAN AJA
Heard:
3 September 2024
Delivered:
This judgment was handed down electronically by
circulation to the parties’ representatives by email,
publication on the Supreme
Court of Appeal website and released to
SAFLII. The time and date for hand-down is deemed to be 11h00 on 1
October 2024.
Summary:
Law of trusts – removal of trustee – provision
in trust deed empowering trustees to adopt resolution forcing trustee
to resign – subject to Trust Property Control Act 57 of 1988 –
destructive conduct by trustee – continued support
of trust by
donor imperilled – beneficiaries prejudiced – resolution
by trustees requiring resignation of trustee valid.
ORDER
On
appeal from:
Gauteng
Division of the High Court, Pretoria (Maumela J, sitting as court of
first instance):
1
The appeal succeeds with
costs, which shall be paid by the first respondent in her personal
capacity.
2
The order of the High Court
is set aside and replaced with the following:
‘
(a)
The application is dismissed.
(b)
The counter-application succeeds. It is declared that the following
resolutions taken at the meeting of the trustees
of the
Rhino
Pride Foundation, Master’s reference number IT001464/15 (G)
(the Trust), on 3 March 2022, are valid and enforceable:
(i)
that the second applicant, Dr Jana Annelise Pretorius NO, is required
to resign and vacate the office of trustee,
in terms of clause 11.1.5
of the Trust’s Deed of Trust; and
(ii) that Ms
Marielle Borgström is appointed as a trustee of the Trust in the
place of the second applicant.
(c)
The second applicant shall tender her resignation and vacate the
office of trustee within seven (7) calendar
days of the date of this
order, failing which the Sheriff of the High Court, Pretoria, is
authorised to sign the necessary documents
to give effect to that
resolution
.
(d)
The first applicant shall pay the costs of the application and the
counter-application, in her personal capacity,
including the costs of
two counsel where so employed.
(e)
The second applicant is directed to sign all documents necessary to
grant the first and second respondents
full access to all the bank
accounts of the Trust, within seven (7) calendar days of the date of
this order, failing which the
Sheriff of the High Court, Pretoria, is
authorised to sign the necessary documents in her stead.’
JUDGMENT
Schippers
JA (Nicholls, Mothle and Unterhalter JJA and Baartman AJA concurring)
[1]
This appeal concerns the proper construction of a clause in a trust
deed, which, subject to the Trust Property Control Act 57 of 1988
(the Act), provides that the office of a trustee shall be vacated
when the remaining trustees unanimously require the resignation of
any trustee. The appellants are trustees of the third respondent,
Rhino Pride Foundation (the Trust), a public charitable
inter
vivos
trust (created during the lifetime of a person) established
in terms of the Act, and registered as a non-profit and public
benefit
organisation.
[2]
The first respondent, Dr Jana Annelise Pretorius (the respondent),
a
specialist wildlife veterinarian, is the founder and a trustee of the
Trust. The main objects of the Trust are the creation of
a fund to
put an end to the poaching of rhinos for their horns; the advancement
and protection of rhinos in South Africa; and the
provision of
medical care and facilities to rhinos, including emergency relief and
rescue.
[3]
On 3 March 2022, in terms of clause 11 of the Deed of Trust (the
trust deed), the appellants adopted a resolution by majority vote,
requiring the respondent to resign from her office with immediate
effect (the impugned resolution). On 16 March 2022 the
respondent, in her personal capacity and as a trustee, applied to the
Gauteng Division of the High Court, Pretoria (the
High Court), for an interdict to prevent the appellants from
enforcing the impugned
resolution, pending the finalisation of an
action to be instituted to set aside that resolution (the main
application). The appellants
filed a counter-application for an order
that the impugned resolution be enforced; alternatively, that the
respondent be removed
from office as a trustee, in terms of s 20(1)
of the Act.
[4]
The High Court granted the main application and
dismissed the counter-application, with costs, including the costs of
two counsel.
It issued an interdict restraining the appellants from
enforcing the impugned resolution, pending finalisation of an action
which
was subsequently instituted by the respondent
for their
removal as trustees
.
[5]
The
appeal
is
with the leave of this Court. Although an interim order is ordinarily
not appealable,
[1]
this case is
somewhat unique: the facts in the main application and the
counter-application are inextricably linked. Therefore,
should it be
found that the impugned resolution is valid, the interdict cannot
remain in force.
The
facts
[6]
The facts are largely common ground and can be briefly stated. The
respondent founded the Trust in 2014. She met the appellants in 2017,
and they became friends through their shared passion for
rhino
conservation. The first appellant is an attorney who runs a
non-profit organisation called Rhino Connect, which raises funds
for
various rhino protection projects, and she is not a recipient of any
funds of the Trust. The second appellant is a Belgian
banker who
worked in the defence industry, and has experience in rhino
anti-poaching technology.
[7]
In May 2019 the second appellant, who sources overseas funding for
the Trust, facilitated a substantial donation of some R50 million by
a foreign donor who has chosen to remain anonymous (the donor),
to
expand the then existing sanctuary which was home to 50 rhinos. This
donation constitutes about 90% of all the funds received
by the Trust
through donations, its sole source of income. The donor concluded a
memorandum of understanding (MoU) with the Trust,
valid until 30 May
2026. In terms of the MoU, the donor agreed to fund the establishment
of a rhino sanctuary in a maximum amount
of USD 5 540 000
over five years. The MoU contains stringent reporting requirements by
the Trust to the donor, and states
that the donor can terminate the
MoU without any reason.
[8]
At the respondent’s request, the first appellant was appointed
as a trustee in 2019 and the second appellant, in 2020. The Trust
bought a farm in Bela-Bela, Limpopo (the farm), in July 2019,
using
the funds provided by the donor. A rhino sanctuary was established on
the farm, which was improved by the construction of
a veterinary
hospital, animal enclosures, staff accommodation and a guardhouse.
[9]
The operating costs of the Trust – about R675 000 per
month – which include staff salaries and extensive security
costs to protect the rhinos, are funded by the foreign donation.
Without this funding the Trust cannot protect, treat and rehabilitate
rhinos on the farm.
[10]
The respondent provides veterinary services to the Trust at a fee of
R75 000 per month.
Initially she was not going to live on the
farm and concluded an agreement to purchase her own property in
Bela-Bela, but this
did not materialise. Subsequently the trustees
agreed that she could live in a house on the farm.
[11]
The parties had a good relationship until late 2021, when the
appellants became concerned
about the respondent’s
administration of the Trust and management of the farm. She failed to
adhere to the budget for improvements
on the farm, which created
difficulties in reporting to the donor. Without the appellants’
knowledge, the respondent’s
fiancé became involved in
the activities of the Trust and its operations on the farm. She
appointed her fiancé’s
companies as service providers to
the Trust. Numerous staff members lodged grievances with the
appellants about the abusive behaviour
of the respondent and her
fiancé, and what they claimed were inhumane working conditions
(they were denied access to kitchen
and ablution facilities). As to
the administration of the Trust, the appellants did not have any
access to its bank accounts at
the time.
[12]
These concerns were discussed at a meeting of the trustees on 18
January 2022. At the outset,
the appellants made it clear that they
were not there to attack the respondent, but to work with her in
addressing their concerns.
The transcribed minutes of that meeting
state the following: that in the past few months the respondent had
acted as a sole trustee;
that the appellants could not communicate
with her; that they had taken a decision that the respondent should
take a leave of absence
for at least a month, during which they would
manage operations on the farm; and that her fiancé should
leave the farm immediately.
The meeting ended with the respondent
agreeing to go on leave and saying that the appellants should tell
her when they wanted her
back. She recorded that she was being forced
to do so and that things could have been done differently. Two
resolutions were taken
at the meeting. These were essentially that
the respondent’s fiancé would leave the farm
immediately; and that the
appellants would be granted access and
added as signatories to the Trust’s bank accounts, and all
transactions in excess
of R15 000 would be authorised by two
trustees.
[13]
The appellants then made the necessary arrangements with the Trust’s
employees and
service providers for the continued operation of the
farm. They ensured that the rhinos were cared for; that the security
was adequate;
and that the employees had access to the necessary
facilities. The rhinos (which do not require constant attention of a
veterinarian)
were cared for mainly by the veterinary nurses and
staff who live on the farm. It was agreed that the respondent would
be available
to provide medical care to the rhinos, and arrangements
were made with Warmbad Dierekliniek (animal clinic) for any
ad hoc
emergency assistance.
[14]
On 20 January 2022, two days after the trustees’ meeting, the
respondent approached
the High Court urgently – without any
notice to the appellants – for a spoliation order and an
interim interdict. The
High Court (Millar J) issued an order
restoring the possession and use of the farm to the respondent; and
granted an interdict
restraining the appellants from terminating her
trusteeship, and interfering with her right to occupy the house on
the farm and
her management of the Trust, pending the outcome of
proceedings to be instituted by the respondent for the removal of the
appellants
as trustees (the
ex parte
order).
[15]
After obtaining the
ex parte
order, the respondent excluded
the appellants from all aspects of the Trust. She denied them access
to its bank accounts, email
server, accounting software, and to all
documents relating to the Trust. She prevented the Trust’s
accountants from accessing
its accounting software. She removed the
appellants from all of the Trust’s WhatsApp groups (which
include its employees
and business associates), posted a notice of
the
ex parte
order on WhatsApp and informed the recipients
that the appellants were no longer trustees. And she sent a copy of
the order to
the donor.
[16]
The donor became extremely concerned about the administration of the
Trust, enquired whether
the remainder of the donation could be
withdrawn and stated that any future donations would not be made. The
donor’s representatives
requested certain information from the
respondent. She apparently did not respond to this request.
[17]
On 26 January 2022 the appellants launched an urgent application to
the High Court for
an order that they be reinstated as trustees.
Prior to the hearing of that application, the respondent relented and
the appellants’
trusteeship was restored. The respondent also
did not pursue her application for contempt of court, which she had
brought in the
High Court in the interim.
[18]
The parties and their legal teams met thereafter. The appellants
proposed that the litigation
be resolved as follows. The respondent
would return to the farm, but not her fiancé. The appellants
would be granted access
to the computer platforms and bank accounts
of the Trust. The concerns raised by the appellants would be resolved
by mediation.
The respondent however rejected this proposal.
[19]
Meanwhile, the donor became increasingly concerned about the status
of the Trust. On 1
February 2022 the donor’s representatives
sent an email to the trustees, in which they expressed their
dissatisfaction with
the situation. They stated that all investments
should be postponed; that a short-term solution should be
implemented; and that
spending should be avoided.
[20]
The appellants then applied to the High Court for the reconsideration
of the
ex parte
order. The application came before Janse Van
Nieuwenhuizen J on 4 February 2022, who set aside that
order, with costs.
The court found that the respondent ‘failed
dismally in observing the utmost good faith when the
ex parte
order was obtained’; that certain allegations in her affidavit
were ‘blatantly untrue’; that she had not been
‘unlawfully deprived of her undisturbed possession of the
farm’; and that the facts did not sustain the order excluding
the appellants from fulfilling their duties as trustees.
[21]
The judgment in the reconsideration application was sent to the
donor, whose representatives
responded by email on 21 February 2022,
as follows:
‘
The
Donor has asked us to express their concern in respect of the recent
developments regarding the court cases between the trustees.
We
have considered the judgement and are disappointed with the way Jana
has handled the situation. It is clear from the judgement
that she
acted dishonestly, and the donor has indicated that their trust in
Jana is lost.
The
donor informed us that unless order is restored at the sanctuary, the
donor considers no longer to support the Rhino Pride Foundation.
Therefore, we ask that Jana resign and/or to be removed as Trustee.
In
the meantime, all investments and/or expenses must be put on hold
unless absolutely critical for the safety and welfare of the
rhinos.’
[22]
The answering affidavit states that a loss of future donations from
the donor would be
the death knell of the Trust, since other
donations make up only some 10% of its income, which would not meet
the Trust’s
monthly expenses, even for a few months.
Consequently, there was a real possibility that the Trust would no
longer be able to continue
its work without the financial assistance
of the donor.
[23]
The respondent’s reply to this is startling. She denied that
‘the Trust would
not be able to continue its work without the
donations from this specific donor’. She said that ‘there
are many other
donors available to the Trust, and there are other
sources of income that could still be explored’.
[24]
A meeting of the trustees was convened for 3 March 2022. One of the
items on the agenda
for that meeting, prepared by the appellants, was
that the respondent should vacate the office of trustee in terms of
clause 11
of the trust deed, and be replaced by Ms Marielle
Borgström, the donor’s representative.
[25]
The main reasons for the proposed resolution that the respondent
vacate her office of trustee,
were the following:
(a) The
respondent had deposed to the affidavit in the
ex parte
application against the appellants, containing false statements. This
irreparably harmed the relationship between her and the appellants,
imperilled the administration of the Trust, and jeopardised the
financial support by the donor.
(b)
After obtaining the
ex parte
order, the respondent, through
her attorneys, addressed correspondence to the other trustees
demanding that they cease any contact
or engagement with any known
associates of the Trust, including its sponsors, contractors, agents,
suppliers and any other affiliate
of the Trust. This was unlawful and
contrary to the trust deed.
(c)
The respondent unlawfully removed the appellants from all computer
platforms necessary to
administer the Trust, and agreed to reinstate
their access to those platforms, only after they launched an urgent
application to
the High Court.
(d)
The respondent falsely informed the trust’s employees,
affiliates, service providers
and business associates, that the
appellants were no longer trustees, thereby damaging the Trust’s
reputation.
(e)
Certain employees of the Trust were seeking redress of their
grievances against the respondent,
before the Commission for
Conciliation, Mediation and Arbitration (CCMA).
(f)
The respondent’s continuance in office as trustee would prevent
the Trust from
being properly administered, and was detrimental to
the welfare of the beneficiaries.
[26]
In the answering affidavit, the first appellant states that the
impugned resolution was
not taken lightly, but in the interests of
the Trust and its beneficiaries, which could only be served if the
Trust were properly
administered. These allegations were met with a
bald denial in reply, and an assertion that ‘no evidence was
led’ to
prove the allegations against the respondent; and that
her constitutional rights in s 34 of the Constitution had been
violated.
[27]
As stated, on 16 March 2022 the respondent launched the main
application. On 14 September
2022 the High Court granted the
interdict and dismissed the counter-application.
The
High Court’s judgment
[28]
The High Court found that in seeking the relief which they did, there
were allegations
and counter-allegations by the parties, which gave
rise to disputes of fact that could not be resolved without recourse
to oral
evidence. On this basis, the court said, it would be
premature to prevent a trustee from participation in the affairs of
the Trust
‘based on reasons that have not been substantiated’.
[29]
The court held that the respondent was not given a fair hearing and
that the impugned decision
‘clearly amounts to an infringement
of the constitutionally enshrined rights of the Founding Trustee’.
Then it said
that it was common cause that rhinos are an endangered
species worldwide; that they require security; and that a ‘unilateral
removal’ of the respondent in circumstances ‘where there
is no oversight at all’, undermined the basis for the
formation
of the Trust.
[30]
The High Court reasoned
that to remove a trustee, the appellants had to comply with the
requirements and procedure set out in the
common law or s 20(1) of
the Act. It said, ‘the removal of a trustee cannot just be
subject to the whims of fellow members
of the Trust’; the
appellants had failed to show that the respondent’s removal was
‘for the benefit of the Trust
Property and the animals on it’;
and the court was loath to endorse the impugned resolution without
the application of the
rules of natural justice. The court stated
that that the impugned decision was ‘arrived at on a unilateral
basis’,
which was ‘contrary to s 34 of the
Constitution’.
[2]
[31]
The High Court concluded that the action instituted by the respondent
should run its course,
to determine whether the impugned resolution
was correctly taken. The parties could then ‘substantiate
fully’ the orders
they were seeking.
Disputes
of fact requiring oral evidence?
[32]
It is convenient to deal first with the counter-application. The
appellants sought a final
order, essentially that the impugned
resolution is valid and enforceable.
[33]
In
Zuma
[3]
Harms JA said:
‘
Motion
proceedings, unless concerned with interim relief, are all about the
resolution of legal issues based on common cause facts.
Unless the
circumstances are special they cannot be used to resolve
factual issues because they are not designed to determine
probabilities. It is well established under the
Plascon-Evans
rule
that where in motion proceedings disputes of fact arise on the
affidavits, a final order can be granted only if the facts
averred in
the applicant's . . . affidavits, which have been admitted by the
respondent . . . , together with the facts alleged
by the latter,
justify such order. It may be different if the respondent’s
version consists of bald or uncreditworthy
denials, raises fictitious
disputes of fact, is palpably implausible, far-fetched or so clearly
untenable that the court is justified
in rejecting them merely on the
papers.’
[34]
The basic facts in the counter-application are common cause. The High
Court’s finding
that there were disputes of fact that could not
be resolved on the papers is erroneous. So too, its conclusion that
the reasons
for the impugned resolution are unsubstantiated.
[35]
The common cause facts are these. At the meeting of 18 January 2022,
the respondent agreed
to take a leave of absence for a month on
account of the appellants’ concerns about her management of the
farm. The appellants
made arrangements to take over operations on the
farm and protect the rhinos. At no stage was there going to be ‘no
oversight
at all’, as the High Court opined. Neither were the
rhinos left unprotected.
[36]
Despite agreeing to take a temporary leave of absence, in a
remarkable
volte-face
, the respondent obtained the
ex parte
order. She stated under oath that she had been unlawfully removed
from the farm; that the appellants had prevented her from practising
as a veterinarian and attending to rhinos under her care; that they
had unilaterally and for no reason, summarily terminated the
security
measures to protect employees living on the farm, and the endangered
rhinos; and that pursuant to the appellants’
threats to remove
the respondent as trustee, they had contacted the Trust’s
private banker to revoke her access to its bank
accounts.
[37]
All of these statements
were false, as Janse Van Niewenhuizen J indeed found. Consequently,
the
ex
parte
order
was set aside. There is thus no factual dispute about the
respondent’s procurement of that order on the basis of false
statements, and its consequences – a complete breakdown of the
relationship between her and the appellants; the donor’s
support being placed at risk; and the sustenance of the beneficiaries
being endangered. And the respondent’s statements that
the
Trust could continue its work without the support of the donor, and
that there are many other donors available to the Trust,
could safely
have been rejected on the papers: they are far-fetched.
[4]
[38]
Then there are the common cause facts relating to the respondent’s
conduct in removing
the appellants from all computer platforms
necessary to administer the Trust; falsely informing the Trust’s
employees, service
providers and business associates, that the
appellants were no longer trustees; and causing the Trust to become
involved in a labour
dispute at the CCMA. And she refused mediation
to settle the differences between the parties.
[39]
Not a scintilla of
evidence can change the truth about any of the events described
above. And the common cause facts apply equally
to the main
application. This is because the respondent was required to establish
the requisites for the grant of an interim interdict,
more
specifically, a prima facie right, though open to some doubt.
[5]
However, it is clear from the judgment that the High Court did not
address the issue as to whether the respondent had met the
requirements for an interim interdict. I revert to this aspect below.
Is
the impugned decision valid?
[40]
The first question that
arises is whether the appellants were required to apply the rules of
natural justice in taking the impugned
decision. These rules have
their origin in Administrative Law and are generally expressed in two
maxims:
audi
alteram partem
(hear
the other side, or the
audi
principle) and
nemo
iudex in propria causa
(no
one may judge in his own cause).
[6]
Procedural fairness in the form of the
audi
principle is concerned
with giving people an opportunity to participate in the decisions
likely to affect them, and to influence
the outcome of those
decisions.
[7]
[41]
The impugned decision,
however, does not constitute administrative action as defined in the
Promotion of Administrative Justice Act 3 of 2000
.
[8]
Consequently, procedural fairness in the context of administrative
action, does not arise, since a trust is a legal institution
sui
generis
(of
its own kind).
[9]
Clause 11 of
the trust deed – the constitutive charter of the Trust to which
all trustees are bound
[10]
–
sets out the circumstances in which the office of trustee shall be
vacated. The appellants took the impugned decision in
terms of clause
11.1.5 of the trust deed, which empowers trustees to unanimously call
for the resignation of a trustee.
[42]
That said, the removal of a trustee is a decision of considerable
importance for the governance
of a trust. A trustee will ordinarily
have no claim of right to hold the office of trusteeship. But there
is good reason to hear
from a trustee before a decision is taken to
remove them. This is so because a decision to remove a trustee must
be well-informed
and taken in the best interests of the trust and the
fulfilment of its objects. What the trustee has to say enhances good
decision-making.
[43]
Clause 11.1.5 may also
not be invoked arbitrarily; nor on the basis of the unreasoned
exercise of majoritarian power; nor
to settle good faith
disagreements; nor on the ground of minor irregular conduct by a
trustee
[11]
that does not
affect the administration of the Trust, its assets or the
beneficiaries. What matters is the proper administration
of the
Trust, to secure and carry out its objects, in the best interests of
the Trust and the beneficiaries. But where, as here,
a breakdown in
relations makes the task of trustees difficult or impossible,
[12]
coupled with a real risk to the financial survival of the Trust and
the welfare of the beneficiaries, replacement of a trustee
may be the
only option.
[44]
The decision to replace the respondent, the evidence shows, was not
taken arbitrarily.
There were compelling reasons for her removal, and
she was treated fairly. She had scheduled a meeting of the trustees
for 24 February
2022. She agreed that the meeting be postponed to 3
March 2022, for the appellants to prepare a list of agenda items,
which included
a proposed resolution that the respondent vacate the
office of trustee, and that Ms Borgström be appointed to that
position.
The list of agenda items was given to the respondent on 21
February 2022.
[45]
The proposed resolution was discussed and debated at the meeting on
3 March 2022,
after which the impugned resolution was adopted. A
resolution appointing Ms Borgström in place of the respondent
was also
taken. The answering affidavit states that Ms Borgström’s
appointment as trustee ensures both that the donor’s
rights in
the operations of the Trust are protected, and that the substantial
funds donated are utilised in accordance with the
MoU, in the
interests of the beneficiaries.
[46]
What is more, in terms of the MoU, the Trust agreed ‘to
collaborate with the Donor
in accordance with the Donor’s
desires relating to participation in the sanctuary activities and
operations’. This
unquestionably, renders Ms Borgström’s
appointment appropriate. The respondent’s assertion that this
appointment
is not in the Trust’s best interests, or that it
creates a conflict of interest, is unsustainable on the evidence.
[47]
What all of this shows, is that the respondent’s s 34
constitutional right to have
a dispute that can be resolved by the
application of law decided by a court, was not infringed. The High
Court’s conclusion
to the contrary, is incorrect. In fact, the
respondent’s approach to the court for an interdict,
constitutes the exercise
by a dissenting minority to refer a decision
by the majority to an appropriate forum for determination, as
envisaged in the trust
deed.
[48]
This brings me to the proper construction of clause 11 of the trust
deed. It provides:
‘
11.
TRUSTEES – DISQUALIFICATION AND VACATION OF OFFICE
11.1
Subject to the Trust [Property] Control Act, the office of a Trustee
shall be vacated if:
11.1.1
he or she resigns his or her office by notice in writing to his or
her co-Trustees;
11.1.2
as a natural person, he or she becomes insolvent or is convicted of
any offence involving
dishonesty;
11.1.3
he or she shall become of unsound mind and mentally incapable of
managing his or her
own affairs;
11.1.4
he or she shall become disqualified in terms of the
Companies Act 71
of 2008
or its predecessor or successor in force from time to time,
to act as a director of a company, or
11.1.5
the remaining Trustees shall unanimously agree in writing that any
Trustee(s) be required
to resign.’
[49]
The disqualifying
criteria in clauses 11.1.2 and 11.1.3, also constitute grounds upon
which the Master of the High Court may remove
a trustee from office
under the Act.
[13]
For present
purposes, the relevant provisions of the Act are ss 9(1) and 20,
which read:
‘
9.
Care,
diligence and skill required of trustee
(1)
A
trustee shall in the performance of his duties and the exercise of
his powers act with the care, diligence and skill which can
reasonably be expected of a person who manages the affairs of
another.’
‘
20.
Removal
of trustee
(1)
A
trustee may, on the application of the Master or any person having an
interest in the trust property, at any time be removed from
his
office by the court if the court is satisfied that such removal will
be in the interests of the trust and its beneficiaries.’
[50]
The proper approach to the interpretation of the above provisions is
settled:
‘
It
is the language used, understood in the context in which it is used,
and having regard to the purpose of the provision that constitutes
the unitary exercise of interpretation . . . [T]he triad of text,
context and purpose should not be used in a mechanical fashion.
It is
the relationship between the words used, the concept expressed by
those words and the place of the contested provision within
the
scheme of the agreement (or instrument) as a whole that constitute
the enterprise by recourse to which a coherent and salient
interpretation is determined.’
[14]
[51]
The inevitable starting
point is the language of the statutory provisions and clause 11 of
the trust deed.
[15]
Section
20(1) of the Act empowers a court to remove a trustee from office, if
it is in the interests of the Trust and the beneficiaries.
Section
20(1) does not state that this power is exclusive to the court. Nor
is there any reason to read such limitation into s
20(1). Thus, s
20(1) does not detract from the principle that a founder may reserve
the right to remove a trustee, or may confer
it on some other person,
if that right is stipulated in the trust instrument.
[16]
The principle is illustrated by this very case: clause 10.7 of the
trust deed provides, inter alia, that the founder, with the
support
of at least a 66% majority of trustees, is entitled to remove a
trustee.
[52]
Clause 11 states that its provisions are subject to the Act. The
purpose of the phrase
‘subject to’, in the field of
legislation,
‘
is
to establish what is dominant and what subordinate or subservient;
that to which a provision is “subject”, is dominant
–
in case of conflict it prevails over that which is subject to
it.’
[17]
[53]
The meaning and effect of this phrase in relation to clause 11.1.5 of
the trust deed is
no different, having regard to the plain wording,
context and purpose of that provision. Clause 11.1.5 is subordinate
to both s
20(1) and s 9(1) of the Act. Section 20(1) authorises the
removal of a trustee if it is in the interests of the trust and the
beneficiaries;
and where a trustee fails to fulfil her duties in
accordance with the standard set out in s 9(1), that trustee may be
required
to vacate her office in terms of clause 11.1.5.
[54]
In other words, and in the particular circumstances of this case, the
power in clause 11.1.5
must be exercised for a reason sanctioned by
the Act. That is why it may not, without more, be invoked by a simple
majority. It
follows that clause 11.1.5, for the reasons set out
above, may also not be invoked arbitrarily, irrationally, or
capriciously,
for example, based on the will, preference or
convenience of the majority of trustees; or where there is no
evidence that the interests
of the trust and its beneficiaries would
be prejudiced.
[55]
This construction is buttressed by the context of clause 11 in the
scheme of the trust
deed, in relation to the powers of trustees and
the objects of the Trust, and the purpose of clause 11 within that
scheme. Thus,
clause 12.1 provides:
‘
The
powers of the Trustees as set out in this Deed of Trust are powers
which are conferred upon them as Trustees of the Trust and
to enable
them to administer the Trust Fund for the benefit of Rhinos in South
Africa in accordance with the Trust Objects, and
not for their
personal benefit. The extent of the powers vested in the Trustees
must be construed in accordance with and subject
to the Trust
Objects.’
[56]
The main objects of the Trust include the creation of a fund to
combat rhino poaching,
the protection of the lives of rhinos in South
Africa; the establishment of a rhino protection zone; the provision
of funding for
the acquisition of land to establish that zone for the
safekeeping of rhinos; and support of sanctuaries and rehabilitation
projects
relating to rhinos. Where these objects are subverted or
threatened by the conduct of a trustee, or where a trustee exercises
her
powers contrary to clause 12.1, the remaining Trustees are
empowered to call for the resignation of that trustee in accordance
with clause 11.1.5, without the need to approach a court for the
removal of a trustee, in terms of s 20(1) of the Act. This plainly,
was the intention of the founder – the respondent, no less.
Otherwise construed, clause 11.1.5 is rendered meaningless.
[57]
Clause 11.1.5 thus
provides an expeditious method for the removal of a trustee, in the
interest of the Trust and its beneficiaries.
It obviates the lengthy
delays, exorbitant costs and uncertainties associated with
litigation. It is supplementary to the disqualification
criteria in
clauses 11.1.2 to 11.1.4 of the trust deed. And it does not oust the
right of trustees to apply to court for the removal
of a trustee in
terms of s 20(1) of the Act, or under the common law, which permits
the removal of a trustee when continuance in
office would prevent the
proper administration of a trust, or be detrimental to the welfare of
beneficiaries.
[18]
In
Gowar
[19]
this Court stated that the common law principle is endorsed in s
20(1) of the Act.
[58]
Returning to the present case, on the common cause facts outlined
above, the appellants
have established that the resolutions that the
respondent vacate the office of trustee, and that Ms Borgström
be appointed
to that position, are valid and enforceable. The removal
of the respondent as trustee is plainly in the interests of the Trust
and its beneficiaries. The papers are confined to these resolutions,
and it is therefore inappropriate to confirm all the resolutions
taken at the meeting of 3 March 2022, as sought by the
appellants.
[59]
The common cause facts
also show that the respondent did not establish a prima facie right
for the grant of the interim interdict:
in essence, she failed to
show that she has good prospects of success in the action in which
she asks for an order that the appellants
be removed as trustees.
[20]
Had the High Court applied the test for a prima facie right, it ought
to have concluded that in light of the inherent probabilities,
the
respondent is unlikely to succeed in her action. Consequently, the
main application should have been dismissed.
Costs
[60]
Trustees must act
honestly and reasonably. They have a duty to protect the assets of
the trust for the benefit of the beneficiaries.
For these reasons, as
a general rule a trustee should not be ordered to pay costs
de
bonis propriis
(out
of own pocket), whether as an applicant or respondent, unless she has
acted in bad faith, negligently or unreasonably.
[21]
[61]
This is such a case. The
ex parte
order, based on falsehoods,
was obtained in bad faith. In that application the respondent sought
an order that the appellants who
opposed it, should pay costs on an
attorney and client scale. The respondent then prevented the
appellants from fulfilling their
duties as trustees. Consequently,
they were compelled to apply for a reconsideration of the
ex parte
order, which was set aside on the basis that it had no foundation, in
fact or in law. The respondent was ordered to pay the costs
of the
ex
parte
application.
[62]
The respondent restored the appellants’ administration of the
Trust, only after they
launched a separate urgent application on 26
January 2022 for her to do so. In the meantime, the respondent had
brought an application
for contempt of court by the appellants, which
she subsequently withdrew. She then launched the main application
which, on the
common cause facts, was doomed to failure from the
outset. In that application, she also sought an order that the
appellants pay
the costs of her contemplated action for their
removal, on an attorney and client scale. Throughout, the respondent
paid scant
regard to Trust’s continued existence and the
welfare of the beneficiaries, regardless of their utter dependence on
the donor.
[63]
In these circumstances, the only appropriate order is that the
respondent should pay the
costs of these proceedings in her personal
capacity. She acted in bad faith and recklessly.
Conclusion
[64]
In the result, the following order is issued:
1
The appeal succeeds with costs, which shall be paid by the first
respondent in her personal capacity.
2
The order of the High Court is set aside and replaced with the
following:
‘
(a)
The application is dismissed.
(b)
The counter-application succeeds. It is declared that the following
resolutions taken at the meeting of the trustees
of the
Rhino
Pride Foundation, Master’s reference number IT001464/15 (G)
(the Trust), on 3 March 2022, are valid and enforceable:
(i)
that the second applicant, Dr Jana Annelise Pretorius NO, is required
to resign and vacate the office of trustee,
in terms of clause 11.1.5
of the Trust’s Deed of Trust, and
(ii) that Ms
Marielle Borgström is appointed as a trustee of the Trust in the
place of the second applicant.
(c)
The second applicant shall tender her resignation and vacate the
office of trustee within seven (7) calendar
days of the date of this
order, failing which the Sheriff of the High Court, Pretoria, is
authorised to sign the necessary documents
to give effect to that
resolution
.
(d)
The first applicant shall pay the costs of the application and the
counter-application, in her personal capacity,
including the costs of
two counsel where so employed.
(e)
The second applicant is directed to sign all documents necessary to
grant the first and second respondents
full access to all the bank
accounts of the Trust, within seven (7) calendar days of the date of
this order, failing which the
Sheriff of the High Court, Pretoria, is
authorised to sign the necessary documents in her stead.’
A SCHIPPERS
JUDGE OF APPEAL
Appearances:
For
appellants:
N
Marshall
Instructed by:
Visser Inc Attorneys,
Pretoria
Honey
Attorneys, Bloemfontein
For
first and second respondents:
A van
der Walt
Instructed
by:
Krige
Attorneys Inc, Pretoria
Phatshoane
Henney Attorneys, Bloemfontein
## [1]Zweni
v Minister of Law and Order[1992]
ZASCA 197;[1993]
1 All SA 365 (A); 1993 (1) SA 523 (A) at 536B;TWK
Agricultural Holdings (Pty) Ltd vHoogveld
Boerderybeleggings (Pty) Ltd and Others[2023]
ZASCA 63; 2023 (5) SA 163 para 30.
[1]
Zweni
v Minister of Law and Order
[1992]
ZASCA 197;
[1993]
1 All SA 365 (A); 1993 (1) SA 523 (A) at 536B;
TWK
Agricultural Holdings (Pty) Ltd v
Hoogveld
Boerderybeleggings (Pty) Ltd and Others
[2023]
ZASCA 63; 2023 (5) SA 163 para 30.
[2]
Section 34 of the Constitution provides:
‘
Everyone
has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before
a court
or, where appropriate, another independent and impartial tribunal or
forum.’
[3]
National
Director of Public Prosecutions v Zuma
[2009]
ZASCA 1
;
2009 (2) SA 277
(SCA);
2009 (1) SACR 361
(SCA);
2009 (4)
BCLR 393
(SCA);
[2009] 2 All SA 243
(SCA) para 26, affirmed by the
Constitutional Court in C
ommercial
Stevedoring Agricultural and Allied Workers’ Union and Others
v Oak Valley Estates (Pty) Ltd and Another
[2022]
ZACC 7
;
[2022] 6 BLLR 487
(CC);
2022 (7) BCLR 787
(CC);
2022 (5) SA
18
(CC) para 46.
[4]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984
(3) SA 623
(A)
at
634H-635C, affirmed in
Mamadi
and Another v Premier of Limpopo Province and Others
[2022] ZACC 26
;
2023 (6)
BCLR 733
(CC);
2024 (1) SA 1
(CC) paras 22, 43-45.
[5]
The requirements of an interim interdict are a prima facie right; a
well-grounded apprehension of irreparable harm if the interim
relief
is not granted and the ultimate relief is granted; a balance of
convenience in favour of the grant of interim relief;
and the
absence of any other satisfactory remedy (11
Lawsa
2 ed para 403).
[6]
L Baxter
Administrative
Law
(1984)
at 536.
[7]
C Hoexter and G Penfold
Administrative
Law in South Africa
3
ed (2021) at 502.
[8]
The Promotion of Administration Justice Act defines ‘administrative
action’ essentially as:
‘
any
decision taken, or any failure to take a decision, by . . . an organ
of state, when . . . exercising a public power
or performing a
public function in terms of any legislation . . . which
adversely affects the right of any person and which
has a direct,
external legal effect . . .’
[9]
Braun v
Blann and Botha NNO and Another
[1984] ZASCA 19
;
1984
(2) SA 850
(A) at 859E.
[10]
Land
and Agricultural Development Bank of South Africa v Parker and
Others
2005
(2) SA 77
(SCA) para 10.
[11]
Volkwyn
NO v Clark & Damant
1946
WLD 456
at 467-9.
[12]
McNair
v Crossman and Another
[2019]
ZAGPJHC 298;
2020 (1) SA 192
(GJ) paras 35 and 36.
[13]
Section 20(2)
(a)
,
(c)
and
(d)
of the Act.
[14]
Capitec
Bank Holdings Ltd and Another v Coral Lagoon Investments 194 (Pty)
Ltd and Others
[2021]
ZASCA 99
;
[2021] 3 All SA 647
(SCA);
2022 (1) SA 100
(SCA) para 25,
with reference to
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]
ZASCA 13; [2012] 2 All SA 262 (SCA);
2012
(4) SA 593 (SCA)
para
18;
University
of Johannesburg v Auckland Park Theological Seminary and
Another
[2021]
ZACC 13
;
2021 (8) BCLR 807
(CC);
2021
(6) SA 1
(CC)
.
[15]
Natal
Joint Municipal Pension Fund
fn
14
para 18.
[16]
E
Cameron, M de Waal and P Solomon
Honoré’s
South African Law of Trusts
6
ed (2018)
at
268;
Badenhorst
v Badenhorst
2006
(2) SA 255
(SCA) para 10;
Raath
v Nel
2012
(5) SA 273
(SCA) para 12.
## [17]S
v Marwane1982
(3) SA 717 (A) at 747H-748A, affirmed inZantsi
v Council of State, Ciskei, and Others1995
(4) SA 615 (CC) para 27.
[17]
S
v Marwane
1982
(3) SA 717 (A) at 747H-748A, affirmed in
Zantsi
v Council of State, Ciskei, and Others
1995
(4) SA 615 (CC) para 27.
[18]
Sackville
West v Nourse and Another
1925
AD 516
at 527;
Honoré’s
op cit
fn
16 at 271.
[19]
Gowar
and Another v Gowar and Others
[2016]
ZASCA 101
;
[2016] 3 All SA 382
(SCA);
2016 (5) SA 225
(SCA) para
28.
[20]
Economic
Freedom Fighters v Gordhan and Others
[2020]
ZACC 10
;
2020 (6) SA 325
(CC);
2020 (8) BCLR 916
para 42.
[21]
Grobbelaar
v Grobbelaar
1959
(4) SA 719
at 725B;
Honoré’s
op cit
fn
16 at 476-477; See 3
Lawsa
2 ed para 377 and the
authorities there collected. See also
Pheko
and Others v Ekurhuleni Metropolitan Municipality
[2015] ZACC 10
;
2015 (5)
SA 600
(CC);
2015 (6) BCLR 711
(CC) para 51.
sino noindex
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