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Judgment No. SC 35/18
Civil Appeal No. SC 519/17
This shows that the appellant and its subsidiaries were not separate units but one economic
entity. Thus, on the basis of the decision in Deputy Sheriff v Trinpac Investments (Pvt) Ltd
& Anor 2011 (1) ZLR 548 (H), the ground of appeal on this question is unsustainable.
Mr Maguchu counters that there is no justification in casu for overriding the
well-entrenched company law principle of separate legal personality and liability as
between distinct corporate entities. The judgment in the Trinpac case makes it clear that
the one entity principle is only applicable in limited circumstances, none of which is
applicable on the facts of this case.
This first ground of appeal relates, in essence, to the orders of the arbitrator and
the court a quo requiring the appellant to apply its personal issue motor vehicles scheme to
all grade D3 managers employed by all of its subsidiaries. Given my conclusion in respect
of that specific issue, it is not necessary to delve into the merits of this particular ground of
appeal.
In any event, it seems unnecessary to broach the scope of the single economic
entity principle canvassed in the Trinpac case, since it is fairly obvious that the court a quo
erred in upholding an award against the appellant’s subsidiaries which were not parties
before the arbitrator or the court. Whether or not it would have been proper to regard these
subsidiaries as operational appendages of the appellant, they themselves should have been
separately cited as parties in the proceedings below.
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