'Fronting' backfires on EPCM Bonisana

A shareholding dispute at EPCM Bonisana has reached boiling point as a married couple claims to have been used as fronts

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lawful and reasonable request, the Patels sent another letter to them on the 14th February 2024 demanding that the directors of Bonisana meet to resolve that a shareholders meeting be convened regarding the removal of the applicants as directors of Bonisana [because] the shareholders have lost faith in the applicants and there has been a breakdown of trust between the parties.

“The shareholders’ meeting was called for 29 February, but the applicants indicated they would not attend. [So], the meeting was postponed to 7 March, but again the applicants said they would be unavailable.

“They were advised to join the meeting via Microsoft Teams and were also afforded an opportunity to appoint either a proxy or an agent. The applicants refused to attend the meeting or give any cogent reasons for not availing themselves. But the meeting, which had proceeded without the applicants, resolved to call a shareholders’ meeting for 22 March,” the judge wrote.

This is the meeting that the applicants went to court to stop because it would have discussed their removal as directors. But the court ruled the Patels were within their rights to act as they did, and that the directors meeting was legal.

The court dismissed Cowan's and Odendaal’s application with costs.