Fletcher v McNair

The dispute concerned the removal of Mr Warren Fletcher as a trustee of the McNair Family Trust at the instance of Mrs Gillian McNair, a co-trustee and beneficiary. The Trust held a share portfolio and a majority shareholding in a property-owning company, Top Spin Investments 101 (Pty) Ltd. Fletcher was appointed trustee following the death of Mrs McNair’s husband. Relationships between Mrs McNair, Fletcher, and other role players deteriorated due to disputes arising mainly from business conflicts in a separate company, Applied Pneumatics SA (Pty) Ltd, in which the Trust had no shareholding but which leased property from Top Spin. Mrs McNair alleged that Fletcher had conflicts of interest, excluded her from decision-making, colluded with others against her, and acted prejudicially to Trust interests. The High Court dismissed her application for Fletcher’s removal, but the Full Court upheld an appeal and ordered his removal. Fletcher appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the Full Court removing the appellant as trustee was set aside and substituted with an order dismissing the appeal to that court with costs.

The case reaffirms and clarifies South African law on the removal of trustees, emphasising that hostility or breakdown in relations between co-trustees, without demonstrable risk to Trust property or administration, is insufficient for removal. It confirms the binding authority of Gowar and cautions courts against expanding grounds for removal without factual proof of prejudice to the Trust.