In Strategic Partners Group (Pty) Ltd (“SPG”) v The Liquidators of Ilima Group (Pty) Ltd (“LIG”), the case revolved around SPG’s attempts to limit the liquidators’ access to documents required for LIG to evaluate and dispose of Ilima’s shareholding in SPG. The court dismissed SPG’s application, upheld the liquidators’ counter-application, and imposed punitive measures against SPG. The judgment underscores the importance of transparency, fairness, and accountability in corporate affairs, with implications for stakeholders, creditors, and legal professionals involved in insolvency proceedings and corporate governance matters.

Who should care about this judgment and why?

Liquidators because they have to realise the assets of insolvent companies for the benefit of creditors, making them directly affected by the outcome of the case.

Legal professionals who focus on corporate law and insolvency proceedings because of its importance to PAIA and access to information issues.

What could you do about it?

  • Read the full judgment by downloading it.
  • Access other relevant PAIA judgments by joining the Michalsons Access to Information programme.

Our insights on the judgment

The court’s decision highlights the significance of following legal frameworks such as PAIA. PAIA mandates that individuals have the right to access information held by both public and private entities.

The court emphasised that liquidators, acting in the interest of creditors and stakeholders, must obtain all necessary documents to accurately evaluate and dispose of company assets during insolvency proceedings. The court ensured compliance with PAIA and facilitated transparency in the valuation process by enforcing the liquidators’ right to access documents through subpoenas.

Furthermore, the judgment highlights PAIA’s role in legal proceedings, ensuring fairness, accountability, and openness in corporate governance. Upholding the liquidators’ document entitlement under PAIA reinforces access to information and stakeholder rights protection in insolvency cases.

Digest

The case involves a dispute between the LIG and SPG over the valuation and disposal of Ilima’s shareholding in SPG. Initially, SPG restricted access to documents in the insolvency proceedings, citing their Memorandum of Incorporation (MOI). The liquidators insisted on broader access for valuation purposes, crucial for creditor benefit. The dispute arose within ongoing insolvency proceedings. Liquidators sought accurate valuation information. SPG’s reluctance to provide documents was a central issue.

The court’s decision

The court dismissed SPG’s main application.  They ruled that its MOI provisions limiting document access were unfair and harmful to the liquidators. It upheld the liquidators’ counter-application, ordering SPG to provide the requested documents and imposing punitive costs. The liquidators had a duty to obtain accurate valuation information for creditors’ benefit, blocked by SPG’s actions. Additionally, it found SPG’s MOI amendments aimed to unfairly limit the liquidators’ access to information.

Order

The SCA dismissed the appeal with costs, including those of counsel.

Details of Strategic Partners Group (Pty) Ltd v The Liquidators of Ilima Group (Pty) Ltd

  • Universal citation: [2023] 2 All SA 658 (SCA)
  • Case number: 1291/2021
  • Full name: Strategic Partners Group (Pty) Ltd and Others v The Liquidators of Ilima Group (Pty) Ltd (in liquidation) and Others

Please note: This judgment summary is not intended for a general audience. It is specifically drafted for the members of the Michalsons Access to Information Programme.