The experienced lawyer gives an update on the Lions of the North’s proposed sale to the Rockets
According to the attorney, the deal was turned down by the league’s governing body based on section 112 of the Companies Act, but media reports suggest the sale can still go ahead as the Lions of the North bosses are going to meet.
Mnisi owns 20% of the Tembisa-based club and has vowed to fight against the change of ownership because the deal with the Rockets was done behind his back.
“Yes the sale was declined by the PSL based on section 112 of the Companies Act,” said Tshabalala to the DailySun.
“A company might not dispose of all or part of its assets unless it has been approved by a special resolution of the shareholders.
“He did not participate in the resolution to give consent for the team to be sold.
“Not everything was done properly, not everything was put on the table. He says lay everything bare on the table, let me satisfy myself.”
It is expected that the shareholders, Mnisi, Brad Kaftel, and Larry Brookstone, are expected to have a special meeting on Tuesday to try and find common ground as the buyer, Tim Sukazi, is already working on a plan to play in the PSL next season.
“They said the club is indebted, where does it come from? Once he’s satisfied then he will give approval at any time for the sale to continue,” added the lawyer.
“How do you let go of your assets, while being a shareholder, by someone telling you to sign because there’s no money? As a shareholder, you’re entitled to know who the team is sold to, and who do you owe.”
Moreover, the experienced lawyer confirmed they have sent a letter to the likes of Kaftel and Brookstone.
“We sent them a letter, we’re just waiting for them to come back to us. We’ve been vindicated that this thing cannot go through without one of the shareholders in agreement,” continued Tshabalala.
“A special resolution must involve all. The resolution says all people must vote, then how do you vote if you’re not there? It’s a sad vindication. Until this whole thing has been resolved among shareholders then the transaction will go through.”