African Bank’s BEE shareholders apply for leave to appeal dismissal of legal action
The case could set a precedent by enabling shareholders to sue directors and auditors
African Bank’s BEE shareholders have applied for leave to appeal against the Pretoria High Court’s recent dismissal of its legal action against the bank’s former CEO Leon Kirkinis, his fellow board members and Deloitte. The case could set legal history by enabling shareholders to sue directors and auditors. On Wednesday Desmond Lockey, chair of Hlumisa Investment Holdings, confirmed that on Friday the high court will hear an application for authority to appeal its earlier dismissal of its bid to hold the directors and auditors of African Bank, which provided loans to low-income earners, liable for R2bn of damages. The legal action, which was launched in 2015 following the headline-grabbing collapse of the African Bank share price in August 2014, has implications for Steinhoff shareholders who believe the directors of the global retail group should be held liable for the collapse of the share price in December 2017. Hlumisa claims the directors contravened several sections of the Com...
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