In late 2019 the Supreme Court of Appeal (“SCA”) was called upon to deal with the question as to whether an arbitration award was unenforceable for want of having achieved finality in relation to the issues referred to arbitration.

The arbitration arose out of a dispute between shareholders in a company. The shareholders agreement between the parties required disputes to be determined by arbitration.

BACKGROUND FACTS

SPX Technologies (Pty) Ltd (“SPXT”), a subsidiary of an American multinational company listed on the New York Stock Exchange, established a subsidiary, DBT Technologies (Pty) Ltd (“DBT”), to conduct business in the power generation and petrochemical industries in South Africa.

SPXT identified a company with the requisite black economic empowerment credentials, Termico (Pty) Ltd (“Termico”), to become a BEE shareholder in DBT. Termico subscribed for 25,1% of the shares in DBT, funding the purchase price by way of a loan in the capital amount of R19,7m granted to it by SPXT (“the Loan”). The Loan attracted interest at an interest rate linked to the prime rate. SPXT retained the balance of 74,9% of the shares in DBT.

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ALASTAIR HAY

Cell: 082-552-9227

Email: ahay@coxyeats.co.za

MARIKAH CALO

Cell: 082-301-7968

Email: mcalo@coxyeats.co.za

Cox | Yeats Attorneys