Authorized Motion Against Company
Stellenbosch Farmers’ Winery Ltd v Distillers Corporation Ltd and Another SA 458 . A trust exists every time someone is bound to carry and administer property on behalf of one other, and never for the benefit of the holder. A cooperative is an autonomous association of persons united voluntarily to meet their frequent economic and social needs and aspirations by way of a collectively-owned enterprise, democratically controlled, and organised and operated on co-operative ideas. If they breach this duty, they will be liable to the close corporation for any loss brought on. The diploma of care and talent required is that which may fairly be anticipated from a person of the particular member’s data and expertise.
The member’s interest is a personal right in opposition to the close company. It entitles him to a pro rata share within the mixture of the members’ pursuits, as well as to take part in a distribution of the profits and, on liquidation, the remaining assets after all creditors have been paid. He thus has a financial curiosity in the failure or success of the close company. The owner is fully in management at this state, all the profit generated … Read MoreContinue Reading