Makgoba and Others v Ledwaba NO and Others

The Mamphoku Makgoba Community Trust was established in 2004 to receive and manage land restored to the Makgoba community under the Restitution of Land Rights Act 22 of 1994. The first to twelfth appellants were trustees whose term of office, in terms of clause 6.4 of the Trust Deed, expired after three years on 26 June 2013. Despite a declaratory High Court order in 2015 confirming that their term had expired, the appellants continued to act as trustees, failed to convene annual general meetings, and allegedly mismanaged trust affairs. In February 2017, the Master of the High Court removed them under s 20(2)(e) of the Trust Property Control Act 57 of 1988. The appellants successfully challenged that removal in the High Court, which reinstated them but ordered their immediate resignation and the holding of meetings to appoint new trustees and verify beneficiaries. The appellants appealed to the Supreme Court of Appeal, disputing aspects of that order, particularly the process concerning beneficiary verification.

The appeal was upheld in part. The SCA declared that the appellants’ term of office as trustees terminated on 26 June 2013 and set aside any subsequent letters of authority. The first and second respondents were directed to convene a general meeting within 60 days to elect a new Board of Trustees from the list of 603 beneficiaries. The newly elected trustees were ordered to convene a further meeting to appoint additional beneficiaries in terms of the Trust Deed. The appellants were ordered to pay the costs of the appeal.

The case clarifies that trustees whose term has expired by effluxion of time have no authority to continue acting, regardless of whether successors have been appointed. It affirms strict adherence to trust deeds in the governance of community trusts arising from land restitution and limits judicial intervention to the framework provided by trust instruments and the Trust Property Control Act. The judgment also delineates the scope of relief under s 23 of the Act, particularly in motion proceedings.