LEVY DETERMINATION DISPUTED: OMBUD, TRUSTEES OR THE COURT – WHO DECIDES ON CORRECT AMOUNT?
Kobi v Trustees For The Time Being Of The De La Rey Body Corporate and Others (A68/2022) [2023] ZAFSHC 128; 2024 (1) SA 174 (FB) (14 April 2023)
There are a number of judgments from our higher courts pronouncing on disputes relating to the extent of a CSOS adjudicator’s powers to make orders. This matter is another example: A dispute between an owner and trustees about alleged erroneous levy calculations was referred to the CSOS and ultimately, to adjudication. The adjudicator dismissed the matter, stating that the CSOS did not have jurisdiction. The outcome of the subsequent appeal to the high court was that the adjudicator’s finding was wrong. The dispute concerned financial issues in respect of which “an order declaring that a contribution levied on owners is incorrectly determined …” (as contemplated in s 39(1)(c) CSOS) was sought. Such dispute was clearly within the adjudicator’s ambit.
The Judgment
Summary of the Judgment
TRUST RESOLUTION’S VALIDITY DENIED: SCA EXPLAINS THE REQUIREMENTS FOR BINDING RESOLUTIONS
Shepstone & Wylie Attorneys v De Witt and Others NNO 2023 (6) SA 419 (SCA)
What is the consequence if a suretyship is signed on the strength of a trustee resolution in circumstances where (i) the trust deed requires unanimity for trustees’ decisions; (ii) notice of the meeting and emails regarding the proposed resolution were shared amongst the trust’s three trustees; (iii) only two trustees could ultimately make it to the meeting; and (iv) the resolution was signed at this meeting? The answer is that the absence of a valid resolution rendered the suretyship of no force and effect.
The Judgment
Summary of the Judgment
CONTINGENT BENEFICIARY SEEKS INFORMATION ABOUT THE DISCRETIONARY TRUST’S ADMINISTRATION: YES OR NO?
Kruth v Rall and Others 2023 (6) SA 514 (WCC)
It is not uncommon for trustees to believe that trust beneficiaries do not have rights to demand access to information relating to the administration of the trust’s assets, especially contingent beneficiaries in a discretionary trust. The judgment and summary below explain why our law grants them such rights.
