Evans v Two Oceans Marathon NPC (CT00810ADJ2021) [2021] COMPTRI 72 (30 November 2021)

Saflii

Automated Summary

Key Facts

The case involves James Evans (Applicant) seeking an order to set aside the proceedings at the Two Oceans Marathon NPC's 2020 Annual General Meeting (AGM). The Applicant filed the application on 10 September 2021 and served it on the First Respondent on 16 September 2021, one day after the required five-working-day deadline under Regulation 142(2) of the Companies Act. The Tribunal determined that the Applicant did not need to apply for condonation for late service, as the registry stamp indicated the application was issued on 10 September 2021. First Respondent argued the relief was moot due to the 2021 AGM having already occurred and a new board appointed, but the Tribunal rejected this, noting the matter's public interest in ensuring proper AGM procedures and the unresolved issue of the Applicant's honorary membership status. The Companies and Intellectual Property Commission (CIPC) did not participate in the proceedings.

Issues

  • Whether the Tribunal should strike out the Applicant's new evidence regarding his membership in the Replying Affidavit.
  • Whether the Applicant served the application on time and if the Tribunal should condone the late service.
  • Whether the Applicant has locus standi to bring the application and the Tribunal's jurisdiction to consider it.
  • Whether the relief to set aside the 2020 AGM is moot given the 2021 AGM has already occurred with a new board in place.

Holdings

  • The contents of Applicant's Replying Affidavit remain as submitted, without being struck out, as First Respondent failed to demonstrate prejudice.
  • The relief sought to set aside the 2020 AGM is not moot, as it involves a public interest issue regarding proper procedure and the applicant's membership status.
  • Applicant has locus standi to approach the Tribunal for the relief sought in the main application.
  • Applicant does not need to apply for condonation for late service of the main application on First Respondent, as the Tribunal's registry stamp dated 10 September 2021 is accepted as the issue date.

Remedies

  • Costs are reserved.
  • The matter may proceed to a hearing on the merits of the main application.

Legal Principles

  • The court considered the application to strike out the Applicant's new evidence, relying on Rule 6(15) of the Uniform Rules of Court. It emphasized that to succeed, the matter must be scandalous, vexatious, or irrelevant, and that the applicant must show prejudice if it is not struck out. The court found no prejudice in this case.
  • The court emphasized the rule of law, which requires that legislation be clear and ascertainable. It noted that the two sub-paragraphs (a) and (b) of Section 169(1) are not separated by an 'and' or 'or', leading to ambiguity in the legislative intent. The court considered the need for clarity to ensure the law is accessible and not subject to undue strain in interpretation.
  • The court addressed the mootness of the Applicant's relief, referencing cases such as National Coalition for Gay and Lesbian Equality v Minister of Home Affairs and Centre for Child Law v Hoërskool Fochville. It held that the issue remains justiciable due to public interest considerations, even though the 2021 AGM has concluded. The court emphasized that a discrete legal issue of public importance can override mootness.
  • The court applied the purposive approach under Section 39(2) of the Constitution, which mandates that legislation be interpreted to promote the spirit, purport, and objects of the Bill of Rights. It referenced the Endumeni case, highlighting the importance of context and equity in statutory interpretation, especially when legislative intent is ambiguous.

Precedent Name

  • National Coalition for Gay and Lesbian Equality v Minister of Home Affairs
  • Natal Joint Municipal Pension Fund v Endumeni Municipality
  • Beinash v Wixley
  • Affordable Medicines Trust v Minister of Health
  • Centre for Child Law v Hoërskool Fochville and Another
  • Western Cape Department and Another v George
  • Minister of Justice and Others v Estate Stransham-Ford

Cited Statute

  • Companies Act 71 of 2008
  • Constitution of the Republic of South Africa
  • Uniform Rules of Court

Judge Name

Ishara Bodasing

Passage Text

  • 5.1 Applicant does have locus standi to approach this Tribunal for the relief sought in the main application;
  • 5.4 The relief sought in the main application is not moot.
  • 5.2 Applicant does not have to apply for condonation for late service of the main application on First Respondent;