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Judgment No. SC 34/18|6
Civil Appeal No. SC 165/16
have been futile for the first respondent to seek a resolution to sue the appellants given the
stance Marange Resources (Private) Limited had already taken towards the intended merger.
The court a quo found that since Marange Resources (Private) Limited was acting in concert
with the other appellants, it would have been futile for the first respondent to have called for a
meeting to resolve that Mbada Diamonds should vindicate its rights. The court a quo held
that the circumstances of the case justified the procedure adopted by the first respondent. In
any event the court a quo also found that the first respondent, as a shareholder of the second
respondent, had a direct interest in the second respondent and therefore had the necessary
locus standi to institute the proceedings.
On the merits the court a quo held that the appellants committed an act of
spoliation on the second respondent (Mbada Diamonds). The court therefore granted the
application for spoliation. The first appellant was aggrieved by that decision and appealed to
this court on the following grounds:
1. The court a quo erred in not finding that, to the extent the first respondent had alleged
facts which went beyond the question of spoliation and rather sought to assert a right
to mine and consequently, of possession; the appellant was entitled to demonstrate the
absence of the same and that, upon the court a quo accepting the absence of such
rights, the first respondent could not be granted the relief of spoliation.
2. The court a quo erred in finding that the shareholder’s derivative action was available
to the first respondent when the founding affidavit had not made out a case for the