African Bank BEE shareholders take fight to Supreme Court of Appeal
Judge grants investors' legal team leave to appeal her judgment
The case that is expected to set a precedent on whether shareholders can sue directors and auditors of companies under the new Companies Act is now headed for the Supreme Court of Appeal. On Friday, Judge Letty Molopa-Sethosa of the Johannesburg High Court granted African Bank Investments (ABIL) BEE shareholders — Hlumisa Investment Holdings and Eyomhlaba Investment Holdings — leave to appeal her earlier judgment in the Supreme Court of Appeal. The shareholders want to hold former African Bank directors and the bank’s external auditor at the time of the collapse, Deloitte, jointly and severally liable for the loss of value in their shares when the bank collapsed. African Bank was a subsidiary of ABIL. Hlumisa, which held 25-million African Bank shares, is demanding R721m from both parties, while Eyomhlaba is demanding R1.3bn for the 48-million shares the entity held. The lawsuit was initiated in 2015, following the collapse of African Bank. In August 2018, Molopa-Sethosa upheld the ...
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