Question
Fanny and Nonthu ran farming operations under a business called Hiltonian Farming CC. Fanny held 40 per cent of the member's interest in the corporation,
Fanny and Nonthu ran farming operations under a business called Hiltonian Farming CC. Fanny held 40 per cent of the member's interest in the corporation, and Nonthu 60 per cent. Unfortunately, the relationship between Fanny and Nonthu broke down, and Nonthu averred that Fanny hijacked the management and business affairs of Hiltonian Farming CC. For example, Fanny failed to repay a loan, although funds were available to do so. This resulted in the creditor taking the security provided by Nonthu. Fanny also made a unilateral donation of 500 ewes and eight rams belonging to the close corporation, to her sister. Furthermore, she withdrew the amount of R1,6 million from the corporation's bank account for personal use. Fanny ejected Nonthu from the farm, excluding her from the management and the benefits of the business. Nevertheless, Nonthu still had to fulfil her obligations to the corporation. Nonthu feels that Fanny acted in a way that was unfair and inequitable to her. Indicate what remedy would be most appropriate in these circumstances, and further, what order could the court make to assist Nonthu if she succeeds with this claim. (5)
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