judgment
21 November 2006
In terms of a court order delivered on 24 August 2006 in a matter launched
by the liquidators of the Corpcapital Group of companies against the Minister
of Trade and Industry, the court held that the Minister is upon a proper
interpretation of the relevant provisions of the Companies Act, 1973, bound to
release as a mechanical administrative action and without considering its
contents, a report of inspectors appointed by the Minister to investigate
certain affairs of a company.
I am advised and believe that this decision is wrong and I have decided to
seek leave to note an appeal against the learned judges' finding in this regard
so as to obtain clarity in principle on the proper interpretation of the
relevant sections.
Although an appeal against this finding would, so I am advised, suspend the
order issued in this regard against the Minister, I have, in having in any
event considered the report and in the meantime decided to release the report
in accordance with the provisions of the Companies Act, 1973; unless any of the
other parties also lodge an application for leave to appeal, which will debar
me from releasing the report.
I wish, however, to do so subject to the following reservations, namely:
(a) that the matters dealt with in Chapters II, IV, V and sections 5, 10, 11
and 12 of Chapter VI fall in my opinion outside the ambit of the inspectors
mandate
(b) that it would appear that certain expert reports or evidence received
from persons appointed by Corpcapital were not made available to Mr Frangos so
as to afford him an opportunity to respond thereto and that before releasing
the report, I would have preferred to have had the benefit of Mr Frangos's
views on those reports and evidence.
In essence, the finding of the inspectors is that there was no financial
irregularity in the manner in which Corpcapital has conducted its business.
I wish to state that I have now fulfilled my obligations in terms of the
Companies Act.
Contact:
Henriette van der Merwe
Tel: (012) 394 1640
Cell: 072 316 5533
Bongani Lukhele
Tel: (012) 394 1643
Cell: 083 291 8689
Bethuel Mnguni
Tel: (012) 394 1647
Cell: 083 624 8888
Please address all your media enquiries to:
mediarelations@thedti.gov.za
Issued by: Department of Trade and Industry
21 November 2006
