The sale of Highlands Park to Tim Sukazi has hit a snag after the owners received a letter – which the Siya crew has seen – from the Premier Soccer League.
Following the story on this website on August 29 that the Lions of the North had sold its topflight status to Sukazi, owner of TS Galaxy in the second tier of SA football, the only outstanding issue was for the league’s executive committee to ratify the agreement.
What appeared to also complicate the potential sale was director Sinki Mnisi’s attempts to block it from going through, arguing that he had not agreed to the decision seemingly taken by chairman Brad Kaftel and the rest of the board.
Mnisi appears to have won round one!
In a letter addressed to both Kaftel and Mnisi, the league’ executive committee, through lawyer Michael Murphy, points out that the “transfer of the business does not meet the requirements of section 112 of the Companies Act”.
With Mnisi, understood to be a 20 percent shareholder, opposing the sale and having already confirmed that he is going the legal route, the PSL now needs enough shareholders to meet the requirements of a special resolution.
Below is Murphy’s letter to Kaftel and Mnisi:
- “The special resolution provided in support of the application to transfer the business of the Company does not meet the requirements of section 112 of the Companies Act.”
- “In particular the resolution it does not refer to precisely the transaction (and parties) referred to in the sale agreement and application (sic)”
- “Save in this respect the Executive Committee does not have any objection to the transaction and/or approving the transfer.”
- “That being the case, upon provision, by the Company, of a special resolution compliant with section 112 the transaction will be approved, and I have been empowered to issue the approval should I be provided with such a resolution.”
Read: Hunt Back In Joburg!
- “If the intention is to proceed with the transaction can I ask that I be provided, as urgently as possible, with the appropriate resolution in accordance with, and meeting the requirements of, section 112. Upon receipt of that I have been mandated to issue the Company and prospective purchaser with written approval.”
- “To the extent that Mr. Mnisi has taken issue with the transaction the matters raised are between the Company and the stakeholders in the Company and cannot be resolved by the League.”
- “In light of the fact that these matters were raised I have been instructed to copy Mr. Mnisi on this communication and I consequently do so.”
Story by @superjourno
Check out the cost of a status in the PSL over the years!