Can a shareholder claim for the loss he or she suffered as a result of diminution in the value of his or her shares? This is the question the Supreme Court of Appeal had to answer in the case of Itzikowitz v Absa Bank Ltd (20729/2014)  ZASCA 43.
The facts of the abovementioned case are as follows: Mr. Itzikowitz (the Applicant) was a shareholder in Compass Projects (Pty) Ltd (Compass). Compass Projects was a shareholder in a public company called Quantum Properties Group Ltd (QPG), which in turn was a shareholder in A Million UP Ltd (AMU). ABSA bank advanced a loan to AMU. The Applicant was a surety for the loan to AMU. ABSA bank issued Summons against the Applicant calling up the surety. The Applicant filed a counterclaim against the bank for the following: that as a result of ABSA’s conduct in advancing funds, etc. to AMU it essentially caused AMU to go file for business rescue proceedings. As such the amount he claimed was for the reduction in value of his shareholding in Compass. The Applicant’s claim is founded in delict, more particularly a claim for pure economic loss. This is a claim recognised in SA law.
The Appeal court again confirmed the fundamental principles of company law in that a company is a distinct legal person. A company is an entity separate and distinct from its members and property vested in a company is not and cannot be regarded as vested in all or any of its members. It is of cardinal importance to keep the property rights of a company and those of its shareholders, even where the latter is a single entity, separate. As stated in LAWSA: “The shareholders has a right to participate in the company as set out in the Memorandum of Incorporation. This right remains unaffected by a wrong done by the company.
There are many medicines. Certain medicines are pops. Other treat peculiar ailment like Lupus nephritis. DIFLUCAN, one of of a new group of triazole antifungal agents, is available as a powder for oral suspension. There are numerous drugs for each afflictions. If you’re concerned about erectile health problem, you probably know about levitra 10mg. Very likely each man knows about levitra cost per pill. (Read more cheapest generic levitra). Once people are watching for drugs to resolve sexual health problem. On occasion another disease will lead to erectile dysfunction. There are risks possible with any type of medication. Certainly you need to take dangerous side effects in consideration before purchasing any medicine. Get in touch with your body and stay healthy for long years.