Bisonboard LTD V K Braun Woodworking Machinery (Pty) LTD 1991 (1) Sa 482 (A)

BISONBOARD LTD v K BRAUN WOODWORKING MACHINERY...
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BISONBOARD LTD v K BRAUN WOODWORKING MACHINERY (PTY) LTD 1991 (1) SA 482 (A)
1991 (1) SA p482
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1991 (1) SA 482 (A) Appellate Division Hoexter JA, BOTHA JA, MI !" JA, !I#HO AS AJA an$ %O DSTO!" AJA Mar&' 9, 199( Septe)*er 1(, 199( in+ to #ase Annotations
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#o,rt - J,ris$i&tion - S,pre)e #o,rt A&t .9 o/ 19.9, s 19(1) (a) - 0rovin&ial or o&al Division 'avin1 2,ris$i&tion over all persons # resi$in1 or *ein1 in its area o/ 2,ris$i&tion - 3'ere re1istere$ o//i&e o/ &o)pan4 an$ its pla&e o/ &entral &ontrol or its )ain or sole pla&e o/ *,siness lo&ate$ in $i//erent pla&es, s,&' &o)pan4 'avin1 $,al resi$en&e /or 2,ris$i&tional p,rposes - #o,rt t',s &o)petent to 'ear an$ $eter)ine a&tion so,n$in1 in )one4 a1ainst &o)pan4 in&orporate$ in So,t' D A/ri&a i/ re1istere$ o//i&e o/ s,&' &o)pan4 lo&ate$ 5it'in area o/ 2,ris$i&tion o/ s,&' #o,rt6 #o)pan4 - A&tions *4 or a1ainst - A&tion so,n$in1 in )one4 a1ainst &o)pan4 in&orporate$ in So,t' A/ri&a 5'ere re1istere$ o//i&e an$ pla&e o/ &entral &ontrol or )ain or sole pla&e o/ *,siness lo&ate$ in $i//erent pla&es - J,ris$i&tion o/ #o,rt to 'ear an$ $eter)ine s,&' " a&tion - S,&' &o)pan4 'avin1 $,al resi$en&e /or 2,ris$i&tional p,rposes - #o,rt 5it'in 5'ose area o/ 2,ris$i&tion &o)pan47s re1istere$ o//i&e lo&ate$ t',s 'avin1 2,ris$i&tion, even t'o,1' &o)pan47s pla&e o/ &entral &ontrol lo&ate$ in area o,tsi$e o/ #o,rt7s 2,ris$i&tion6 8
H)!'#" ) / K"p#" ! Se&tion 19(1)(a) o/ t'e S,pre)e #o,rt A&t .9 o/ 19.9 provi$es t'at a o&al Division 7s'all 'ave 2,ris$i&tion over all persons resi$in1 or *ein1 in an$ in relation to all &a,ses arisin1666 5it'in its area o/ la5 2,ris$i&tion66676 It is esta*lis'e$ la5 t'at t'e 5or$s 7&a,ses arisin17 )ean 7le1al pro&ee$in1s $,l4 arisin17, t'at is pro&ee$in1s in 5'i&' t'e #o,rt 'as 2,ris$i&tion ,n$er t'e &o))on la56 I/ a $e/en$ant is eit'er $o)i&ile$ or resi$ent in t'e area o/ 2,ris$i&tion o/ t'e #o,rt, % t'is 5ill *e a s,//i&ient 2,ris$i&tional &onne&tin1 /a&tor6 !eit'er o/ t'ese re9,ire)ents pre$i&ates t'e a&t,al p'4si&al presen&e o/ t'e $e/en$ant 5it'in t'e #o,rt7s area6 (8ors4t' Private International Law 2n$ e$ at 1:. - ;6) A &o)pan4 &an an$ $oes 'ave a $,al resi$en&e /or 2,ris$i&tional p,rposes 5'ere its &entral &ontrol (t'e pla&e 5'ere its 1eneral a$)inistration is lo&ate$, /ro) 5'ere t'e 1eneral s,perinten$en&e o/ its a//airs ta+es pla&e an$ 5'ere, &onse9,entl4, it is sai$ t'at it &arries on its real or prin&ipal *,siness) an$ its re1istere$ o//i&e are lo&ate$ at $i//erent H pla&es6 A #o,rt is a&&or$in1l4 &o)petent to 'ear an$ $eter)ine an a&tion so,n$in1 in )one4 instit,te$ a1ainst a &o)pan4 in&orporate$ in So,t' A/ri&a 5it' its re1istere$ o//i&e 5it'in t'e area o/ 2,ris$i&tion o/ s,&' #o,rt, even i/ s,&' &o)pan47s sole or )ain pla&e o/ *,siness or its pla&e o/ &entral &ontrol is o,tsi$e t'e area o/ 2,ris$i&tion o/ s,&' #o,rt (per Hoexter JA, Bot'a JA an$ %ol$stone AJA &on&,rrin1, Milne JA an$ !i&'olas AJA $issentin1)6 T'e $e&ision in Dairy Board v John T Rennie & Co (Pty) Ltd19:; (<) SA :;8 (3) approve$6 I T'e $e&ision in t'e 3it5atersran$ o&al Division in Bisonboard Ltd v K Braun oodwor!in" #a$hinery (Pty) Ltd reverse$6 C!+) I#1"%*! i"# Appeal /ro) a $e&ision in t'e 3it5atersran$ o&al Division (M4*,r1'
J
AJ)6 T'e iss,es /or
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$e&ision appear /ro) t'e 2,$1)ent o/ Hoexter JA6

1991 (1) SA p482
HO"=T"> JA
A D J %haw &C an$ Klevans!y /or t'e appellant re/erre$ to t'e /ollo5in1 a,t'orities? 'ri(shaw v #i$a #ines Ltd 1912 T0D 4.(@ T Be$!ett & Co Ltd v ) Kroo(er Ltd 1912 AD <24@ I%# Inter Ltd v #araldo198< (4) SA 112 (T)@ Dairy Board v John T Rennie & Co (Pty) Ltd19:; (<) SA :;8 (3)@ *nit Constru$tion Co Ltd v Bullo$! (Inspe$tor o+ Ta,es) A19.9B < All "> 8<1 at 8<:@ Todd v -"yptian Land and Invest(ent Co Ltd B ./0123 /4 TC //0 at /456 %wedish Central Railway Co Ltd v Tho(pson A192.B 9 T# <42 at <:2 - <6
P Blieden %C /or t'e respon$ent re/erre$ to t'e /ollo5in1 a,t'orities? -, parte #inister o+ 7ative 8++airs 1941 AD .< at .8 - ;2@ -state Koot$her v Co((issioner +or Inland Revenue 1941 Be$!ett & Co AD 2.; at 2;(@ De Beers # Consolidated #ines v )owe 19(; A# 4.. at 4.9@ T Ltd v ) Kroo(er Ltd 1912 AD <24 at <<4@ 'ri(shaw v #i$a #ines Ltd 1912 T0D 4.( at 4.; - :@ I%# Inter Ltd v #araldo198< (4) SA 112 (T) at 114 - 1.@ #inister o+ Law and 9rder v Patterson1984 (2) SA :<9 (A) at :..% - :.;"@ Dairy Board v John T Rennie & Co (Pty) Ltd19:; (<) SA :;8 (3)@ D Heno&'s*er1 on The Co(panies 8$t 4t' e$ at 2.;@ :eneta #ineraria %P8 v Carolina Collieries (Pty) Ltd (in Li;uidation)198: (4) SA 88< (A)6 Cur adv vult6 Postea (Septe)*er 1()6 &$'(*)# Hoexter JA? T'is appeal raises t'e 9,estion o/ t'e &o)peten&e o/ a &o,rt to 'ear an$ $eter)ine an a&tion so,n$in1 in )one4 instit,te$ a1ainst a &o)pan4 solel4 on t'e 1ro,n$s t'at it 5as in&orporate$ in So,t' A/ri&a an$ 'as its re1istere$ o//i&e 5it'in t'e area o/ 2,ris$i&tion o/ s,&' &o,rt6 In t'e 3it5atersran$ o&al Division t'e appellant instit,te$ an 8 a&tion /or t'e pa4)ent o/ $a)a1es a1ainst t5o $e/en$ants6 T'e /irst $e/en$ant in t'e a&tion is t'e respon$ent in t'e appeal6 #'apter CII o/ A&t ;1 o/ 19:< (7t'e #o)panies A&t7) re9,ires ever4 &o)pan4 to 'ave a postal a$$ress an$ a re1istere$ o//i&e 5it'in t'e >ep,*li& o/ So,t' A/ri&a6 S,*se&tions (1) an$ (2)(a) o/ s 1:( rea$ as % /ollo5s?
71:((1) "ver4 &o)pan4 in&l,$in1 ever4 external &o)pan4 s'all 'ave in t'e >ep,*li& (a) a postal a$$ress to 5'i&' all &o)),ni&ations an$ noti&es )a4 *e a$$resse$@ an$ (b) a re1istere$ o//i&e to 5'i&' all &o)),ni&ations an$ noti&es )a4 *e H a$$resse$ an$ at 5'i&' all pro&ess )a4 *e serve$6 (2)(a) Dpon in&orporation o/ a &o)pan4, noti&e o/ t'e sit,ation o/ t'e re1istere$ o//i&e an$ o/ t'e postal a$$ress s'all *e 1iven to t'e >e1istrar67
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Apart /ro) plea$in1 to t'e )erits o/ t'e &ase t'e respon$ent /ile$ a spe&ial plea in 5'i&' it raise$ an o*2e&tion to t'e 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division to 'ear t'e a&tion6 Alt'o,1' its re1istere$ o//i&e is sit,ate$ in Jo'annes*,r1 t'e respon$ent &arries on its I *,siness in B,tter5ort' in t'e >ep,*li& o/ Trans+ei6 T'e respon$ent7s o*2e&tion to t'e 2,ris$i&tion o/ t'e #o,rt a ;uo 5as *ase$ ,pon t'e /a&t t'at its sole pla&e o/ *,siness is in t'e Trans+ei6 In t'e #o,rt *elo5 t'e spe&ial plea 5as resiste$ on a n,)*er o/ $i//erent 1ro,n$s6 T'e &'ie/ &ontention a$van&e$ on *e'al/ o/ t'e J appellant 5as
1991 (1) SA p484
HO"=T"> JA
A t'at, inas),&' as t'e respon$ent 'a$ its re1istere$ o//i&e in Jo'annes*,r1, it 5as, 5it'in t'e )eanin1 o/ s 19(1)(a) o/ t'e S,pre)e #o,rt A&t .9 o/ 19.9 (7t'e S# A&t7),
7666 a person resi$in1 or *ein1 in7
t'e area o/ 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division6 T'e )atter B &a)e *e/ore J 8 M4*,r1' AJ6 T'e learne$ J,$1e r,le$ t'at t'e respon$ent 5as not 7a person resi$in1 or *ein1 in7
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t'e area o/ 2,ris$i&tion@ an$ 'e re2e&te$ t'e /,rt'er s,*)issions raise$ on *e'al/ o/ t'e appellant in s,pport o/ its ar1,)ent t'at t'e trial #o,rt 5as e)po5ere$ to entertain t'e a&tion6 T'e spe&ial plea 5as a&&or$in1l4 ,p'el$, an$ a*sol,tion /ro) t'e instan&e, 5it' &osts, 5as or$ere$6 # 3it' leave o/ t'e trial #o,rt t'e appellant appeals to t'is #o,rt6 T'e sole iss,e raise$ in t'e appeal is t'e &orre&tness or ot'er5ise o/ t'e $e&ision *4 M4*,r1' AJ t'at t'e respon$ent 5as not 7a person resi$in1 or *ein1 in7 t'e area o/ 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division6 T'e respon$ent is not a nat,ral person *,t a &orporation6 As pointe$ Private International Law 2n$ e$ (19.() at 29.?
D
o,t *4 Martin 3ol//
7666 (I)t is ,se/,l to realise t'at &on&eptions ,se$ in t'e &ase o/ nat,ral persons, s,&' as nationalit4, $o)i&ile, or resi$en&e, &an *e applie$ to le1al persons onl4 *4 5a4 o/ analo14 an$ not 5it'o,t $istortion o/ t'eir ori1inal an$ 1en,ine )eanin16 Eet it see)s i)possi*le to $o 5it'o,t t'ese &on&eptions6 8or ever4 le1al s4ste) &ontains so)e r,les 5'i&' atta&' &ertain &onse9,en&es to a person7s " nationalit4, $o)i&ile, or resi$en&e 5it'o,t $istin1,is'in1 *et5een nat,ral an$ arti/i&ial persons67
A 2,$1)ent so,n$in1 in )one4 )a4 *e p,t into e//e&t an45'ere6 8ro) t'is it /ollo5s (see 0olla+ The %outh 8+ri$an Law o+ Jurisdi$tion (19<:) at 22) t'at in an a&tion /or t'e pa4)ent o/ )one4
8
7666 it is a s,//i&ient *asis /or 2,ris$i&tion t'at t'e State in 5'ose &o,rt t'e a&tion is *ro,1't 'as po5er over t'e $e/en$ant76
Dealin1 5it' t'e State7s s,pre)e po5er an$ t'e 2,ris$i&tion o/ its &o,rts Bristo5e J re)ar+e$ in %$hli((er v Risin"<s -,e$utri, 19(4 TH 1(8 at 111?
7!o5 t'e 2,ris$i&tion o/ t'e &o,rts o/ ever4 &o,ntr4 is territorial in % its extent an$ &'ara&ter, /or it is $erive$ /ro) t'e soverei1n po5er, 5'i&' is ne&essaril4 li)ite$ *4 t'e *o,n$aries o/ t'e State over 5'i&' it 'ol$s s5a46 3it'in t'ose *o,n$aries t'e soverei1n po5er is s,pre)e, an$ all persons, 5'et'er &itiFens, in'a*itants, or &as,al visitors, 5'o are personall4 present 5it'in t'ose *o,n$aries an$ so lon1 as t'e4 are so present, an$ all propert4 (5'et'er )ova*le or i))ova*le) /or t'e ti)e H *ein1 5it'in t'ose *o,n$aries, are s,*2e&t to it an$ to t'e la5s 5'i&' it ena&te$ or re&o1nise$67
Alt'o,1' t'e sa)e &o))on la5 applies t'ro,1'o,t So,t' A/ri&a, it is trite t'at ,pon t'e esta*lis')ent o/ t'e Dnion o/ So,t' A/ri&a t'e separate 2,$i&ial s4ste)s o/ t'e /o,r &olonies 5ere lar1el4 preserve$ $espite t'eir /or)al ,ni/i&ation in t'e S,pre)e #o,rt o/ So,t' A/ri&a6 I In ter)s o/ s 19 o/ t'e S# A&t t'e ori1inal 2,ris$i&tion en2o4e$ *4 t'e 0rovin&ial an$ o&al Divisions is li)ite$ to t'e extent o/ t'eir respe&tive territorial areas6 S,&' territorial 2,ris$i&tion is &on/ir)e$ *4 s ;8(2) o/ t'e >ep,*li& o/ So,t' A/ri&a #onstit,tion A&t 11( o/ 198<6 In re1ar$ to t'e 2,ris$i&tion o/ So,t' A/ri&an &o,rts over $o)esti& at 94) states?
J
&orporations Polla! (op $it
1991 (1) SA p483
HO"=T"> JA
A
7A &orporation in&orporate$ in t'e Dnion is s,*2e&t to t'e po5er o/ t'e So,t' A/ri&an State an$ it /ollo5s t'ere/ore t'at on prin&iple So,t' A/ri&an &o,rts s'o,l$ 'ave 2,ris$i&tion in an a&tion /or a 2,$1)ent so,n$in1 in )one4 a1ainst it6 B,t o5in1 to t'e non-existen&e o/ an4 &o,rt 'avin1 a,t'orit4 in respe&t o/ t'e 5'ole Dnion an$ o5in1 to t'e territorial li)itations i)pose$ ,pon t'e a,t'orit4 o/ t'e Divisions o/ t'e S,pre)e #o,rt, t'is prin&iple &annot *4 itsel/ /,rnis' a &riterion B o/ 2,ris$i&tion in an a&tion a1ainst a $o)esti& &orporation6 T'e &o,rts 'ave t'ere/ore *een ,na*le to rel4 solel4 on t'is prin&iple /or t'e p,rpose o/ $eter)inin1 t'eir 2,ris$i&tion in a&tions a1ainst $o)esti& &orporations an$ 'ave *een &o)pelle$ to s,pple)ent t'is prin&iple *4 anot'er &riterion o/ 2,ris$i&tion6 T'is t'e4 'ave /o,n$ in t'e notion o/ t'e prin&ipal pla&e o/ *,siness o/ a &orporation67 #
T'e notion to 5'i&' Polla! )a+es re/eren&e in t'e &on&l,$in1 senten&e o/ t'e passa1e &ite$ a*ove 5as $is&,sse$ in an earl4 2,$1)ent o/ t'is #o,rt in T Be$!ett & Co Ltd v ) Kroo(er Ltd 1912 AD <246 In Be$!ett<s &ase t'e $e/en$ant 5as a &o)pan4 5'i&' 'a$ its re1istere$ o//i&e an$ its prin&ipal pla&e o/ *,siness in 0retoria6 It also 'a$ a *ran&' in D Jo'annes*,r16 T'e plainti// s,e$ t'e $e/en$ant in t'e 3it5atersran$ o&al Division /or $a)a1es /or alle1e$ *rea&' o/ &ontra&t6 Be/ore t'e trial #o,rt an o*2e&tion 5as ,ns,&&ess/,ll4 raise$ to t'e 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division, *,t on appeal t'is #o,rt 'el$ t'at t'e o*2e&tion 'a$ *een properl4 ta+en6 T'e 2,$1)ent o/ t'is #o,rt 5as " $elivere$ *4 Innes JA6 T'e 2,ris$i&tion o/ t'e trial #o,rt 5as $erive$ /ro) s 1; o/ t'e Transvaal A$)inistration o/ J,sti&e 0ro&la)ation 14 o/ 19(2, a&&or$in1 to 5'i&' ena&t)ent (I 9,ote /ro) t'e 2,$1)ent o/ Innes JA at <<1 - 2) t'e o&al Division
7666 s'all 'ave &o1nisan&e o/ all pleas an$ 2,ris$i&tion in all &ivil &a,ses an$ pro&ee$in1s arisin1666 5it'in t'e sai$
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#olon4, 5it' 8 2,ris$i&tion over His Ma2est47s s,*2e&ts an$ all ot'er persons 5'o)soever resi$in1 or *ein1 5it'in t'e sai$ #olon476
T'is #o,rt 'el$ t'at t'e resi$en&e o/ t'e appellant 5as at 0retoria, 5'ere its 1eneral a$)inistration 5as &entre$@ an$ t'at it &o,l$ not *e $ee)e$ to 'ave a resi$en&e in Jo'annes*,r1 /or t'e servi&e o/ pro&ess in % respe&t o/ a &ontra&t entere$ into 5it' its 0retoria o//i&e6 In t'e &o,rse o/ 'is 2,$1)ent t'e learne$ J,$1e o/ Appeal o*serve$ at <<4?
7!o5 t'e ter)s Gresi$eG an$ Gresi$en&eG &an onl4 *e ,se$ in t'eir tr,e si1ni/i&an&e 5it' re1ar$ to nat,ral persons6 T'e resi$en&e o/ a le1al persona, li+e a &o)pan4, arti/i&iall4 &reate$, ),st *e a )ere notional &on&eption intro$,&e$ /or p,rposes o/ 2,ris$i&tion an$ la56666 T'e H onl4 'o)e 5'i&' a &orporation &an *e sai$ to 'ave is t'e pla&e 5'ere t'e operations /or 5'i&' it 5as &alle$ into existen&e are &arrie$ on6 So /ar as it &an *e sai$ to resi$e an45'ere, t'at is 5'ere it resi$es6 An$ i/ t'e analo14 o/ a nat,ral person is to *e /ollo5e$, one 5o,l$ sa4 t'at it &o,l$ onl4 resi$e in one pla&e at one ti)e6 T'is is a point on 5'i&' /ro) t'e nat,re o/ t'in1s it is not possi*le to o*tain >o)an-D,t&' I a,t'orit4@ *,t t'ere is a)ple s,pport in "n1lis' la5 - *ot' text *oo+s an$ &ases - /or t'at vie5 in re1ar$ to t'e $o)esti& aspe&t o/ t'e resi$en&e o/ &o)panies67
Se&tion 19 o/ t'e S# A&t $eals 5it' t'e persons over 5'o) an$ t'e )atters in relation to 5'i&' 0rovin&ial an$ o&al Divisions o/ t'e S,pre)e #o,rt 'ave 2,ris$i&tion6 >elevant to a &onsi$eration o/ t'e present appeal are t'e intro$,&tor4 5or$s o/ s 19(1)(a) an$ s 19(<) J 5'i&' rea$ as /ollo5s?
1991 (1) SA p484
HO"=T"> JA
A
719(1)(a) A 0rovin&ial or o&al Division s'all 'ave 2,ris$i&tion over all persons resi$in1 or *ein1 in an$ in relation to all &a,ses arisin1 an$ all o//en&es tria*le 5it'in its area o/ 2,ris$i&tion an$ all ot'er )atters o/ 5'i&' it )a4 a&&or$in1 to la5 ta+e &o1nisan&e6666
(b)666 (2)666
B
(<) T'e provisions o/ t'is se&tion s'all not *e &onstr,e$ as in an4 5a4 li)itin1 t'e po5ers o/ a 0rovin&ial or o&al Division as existin1 at t'e &o))en&e)ent o/ t'is A&t, or as $eprivin1 an4 s,&' Division o/ an4 2,ris$i&tion 5'i&' &o,l$ la5/,ll4 *e exer&ise$ *4 it at s,&' &o))en&e)ent67
T'e 5or$s 7&a,ses arisin17 ,se$ in s 19(1) o/ t'e S# A&t are - in # vario,s 2,xtapositions - to *e /o,n$ in all t'e stat,tes esta*lis'in1 t'e &olonial pre$e&essors o/ t'e vario,s 0rovin&ial an$ o&al Divisions in So,t' A/ri&a (e1 s <( o/ t'e #'arter o/ J,sti&e 18<4@ s ; o/ t'e S,pre)e #o,rt A&t (!atal) <9 o/ 189;@ s 1; o/ t'e A$)inistration o/ J,sti&e 0ro&la)ation (Transvaal) rea$ 5it' s < o/ t'e "sta*lis')ent o/ D t'e S,pre)e #o,rt an$ Hi1' #o,rt Or$inan&e (Transvaal) 2 o/ 19(2@ s < o/ t'e A$)inistration o/ J,sti&e Or$inan&e (O>#) 4 o/ 19(2)6 See Polla! (op $it at : 8)6 In a lon1 line o/ &ases t'e 5or$s 7&a,ses arisin17 'ave *een interprete$ as si1ni/4in1 not 7&a,ses o/ a&tion arisin17 *,t 7le1al pro&ee$in1s $,l4 arisin17, t'at is to sa4, pro&ee$in1s in 5'i&' t'e #o,rt 'as 2,ris$i&tion ,n$er t'e &o))on la56 In %teytler 79 v =it>"erald " /0// 8D 10? Innes J8 (at 5/?) said o+ the phrase <all $auses arisin"<@
7T'ere t'e 5or$ G&a,sesG &learl4 )eans le1al pro&ee$in1s6666 GArisin1G o/ &o,rse )eans $,l4 arisin16 An$ an a&tion arises 5'ere it 'as its ori1in, 5'ere t'e /irst steps to *e1in it &an *e $,l4 ta+en6 So t'at 5'en a #o,rt is 1iven ,nli)ite$ 2,ris$i&tion in all G&a,ses arisin1G 5it'in a &ertain area, t'at is e9,ivalent to 1ivin1 it 8 2,ris$i&tion to tr4 all )atters /or 5'i&' *4 t'e &o))on la5 o/ t'e &o,ntr4 t'e 'i1'est #o,rt o/ /irst instan&e 5o,l$ in t'at area *e t'e proper /or,)67In t'e sa)e &ase a,ren&e JA p,t t'e )atter t',s (at <<1)? 73'en $oes a &a,se Garise in t'e sai$ $istri&tsGH It appears to )e t'at it &an onl4 so arise 5'en t'e part4, t'e $e/en$ant, or t'e a&&,se$, % is a)ena*le to t'e /or,) &reate$ *4 t'e A&t6 In &ivil )atters 'e is so a)ena*le i/ 'e resi$es t'ere, 5'erever t'e &a,se o/ a&tion arose, on t'e prin&iple a$tor se;uitur +oru( rei67
See /,rt'er? The 9wnersA #aster and Crew o+ the %% <)u(ber< v The 9wners and #aster o+ the %% <8nswald< 1912 AD .4; at ..< - 4@ Le! v -state 8"ents Board19:8 (<) SA 1;( (#) at 1;;H 1;:#@ %o+te, #attress (Pty) H Ltd v Transvaal #attress and =urnishin" Co Ltd19:9 (1) SA :.. (D) at :.:B - D6 In 'ul+ 9il Corporation v Re(brandt =abri!ante en )andelaars (-d(s) Bp!19;< (2) SA 1( (T) Trollip J s,))arise$ t'e position (at 1:8 - H) as /ollo5s?
7T'e res,lt is t'at t'e #o,rt7s 2,ris$i&tion ,n$er s 19(1) is si)pl4 I $eter)ine$, as 'it'erto, *4 re/eren&e to t'e &o))on la5 an$Ior an4 relevant stat,te6 In s,&' $eter)ination t'e presen&e or resi$en&e o/ t'e $e/en$ant or respon$ent 5it'in or 5it'o,t t'e #o,rt7s area o/ 2,ris$i&tion 5ill 'ave t'at i)portan&e or relevan&e 5'i&' t'e &o))on or stat,te la5 atta&'es to it (Polla! at 9 - 14 5'ere all t'e a,t'orities are &olle&te$)6 See too s 19(<) *4 virt,e o/ 5'i&' t'e 2,ris$i&tion 5'i&' an4 Division 'a$ *4 &o))on la5 an$Ior stat,te la5 at t'e J &o))en&e)ent o/ t'e S,pre)e #o,rt A&t is retaine$67 1991 (1) SA p485
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HO"=T"> JA
A In re1ar$ to t'e &onne&tin1 /a&tors or rationes Burisdi$tionis re&o1nise$ *4 o,r &o))on la5, a &onvenient startin1 point is t'e &lassi& state)ent o/ De Cilliers #J in -inwald v The 'er(an est 8+ri$an Co(pany (188:) . S# 8; at 91?
73'at t'en are t'e 1ro,n$s ,pon 5'i&' t'e 2,ris$i&tion o/ t'is #o,rt &an *e exer&ise$, in respe&t o/ an4 &ontra&t over an4 $e/en$ant 5it'o,t B 'is &onsent, express or i)plie$H T'e 1ro,n$s are t'ree/ol$@ viF by virtue o+ the de+endant<s do(i$ile bein" here, *4 virt,e o/ t'e &ontra&t eit'er 'avin1 *een entere$ into 'ere or 'avin1 to *e per/or)e$ 'ere, an$ *4 virt,e o/ t'e s,*2e&t )atter in an a&tion in re( *ein1 sit,ate$ in t'is #olon467
(")p'asis s,pplie$6) It is no less &lear, 'o5ever, t'at at &o))on la5 # resi$en&e o/ t'e $e/en$ant entren&'es t'e 2,ris$i&tion o/ t'e relevant /or,)6 In %$ia$ero & Co v Central %outh 8+ri$an Railways 191( TS 119, t'e 2,$1)ent o/ Innes #J *e1ins (at 121) 5it' t'e /ollo5in1 5or$s?
7T'e 1eneral r,le 5it' re1ar$ to t'e *rin1in1 o/ a&tions is a$tor se;uitur +oru( rei6 T'e plainti// as&ertains 5'ere t'e $e/en$ant resi$es, 1oes to 'is /or,), an$ serves 'i) 5it' t'e s,))ons t'ere67 D
T'e &on&ept ,n$erl4in1 2,ris$i&tion *ase$ ,pon $o)i&ile an$ resi$en&e o/ a $e/en$ant 5'o is a nat,ral person in an a&tion /or a 2,$1)ent so,n$in1 in )one4 is $es&ri*e$ as /ollo5s *4 Polla! (lo$ $it at 24 - .)?
7I/ t'e $e/en$ant, alt'o,1' not p'4si&all4 present 5it'in t'e State, is $o)i&ile$ t'erein, a 2,$1)ent a1ainst 'i) so,n$in1 in )one4 &an " ,s,all4 *e )a$e e//e&tive a1ainst 'i)6 I/ a person is $o)i&ile$ in a State 'e ,s,all4 'as 'is 'o)e t'ere6 S,&' a person &an t'ere/ore *e expe&te$ to ret,rn to t'e State an$ to 'ave t'e *,l+ o/ 'is possessions 5it'in t'e State6 A 2,$1)ent so,n$in1 in )one4 &an t'ere/ore nor)all4 *e )a$e e//e&tive a1ainst a person 5'o is $o)i&ile$ 5it'in t'e State6 It is tr,e t'at a person )a4 *e $o)i&ile$ in a State 5it'o,t 'avin1 'is 'o)e t'ere, an$ in s,&' a &ase it )a4 *e ,nli+el4 t'at a 2,$1)ent so,n$in1 in 8 )one4 &an *e )a$e e//e&tive a1ainst 'i) in s,&' State6 T'is, 'o5ever, is an ,n,s,al &ase@ nor)all4 a person is $o)i&ile$ in t'e State 5'i&' is in /a&t 'is 'o)e6 It is t'ere/ore not ,nreasona*le to $isre1ar$ t'e ,n,s,al &ase an$ to sa4 t'at t'e $o)i&ile o/ t'e $e/en$ant 5it'in t'e State is a s,//i&ient *asis /or 2,ris$i&tion in an a&tion in 5'i&' a 2,$1)ent so,n$in1 in )one4 is &lai)e$6 3'at 'as *een sai$ in /avo,r o/ $o)i&ile as a *asis /or 2,ris$i&tion % applies e9,all4 to resi$en&e6 I/ t'e $e/en$ant is resi$ent 5it'in t'e State, t'en, alt'o,1' 'e is not p'4si&all4 present 5it'in t'e State at t'e ti)e o/ t'e &o))en&e)ent o/ t'e a&tion, a 2,$1)ent so,n$in1 in )one4 5ill nor)all4 *e e//e&tive a1ainst 'i)67
I s'all ret,rn to t'e s,*2e&t o/ $o)i&ile - an$ t'en )ore spe&i/i&all4 in relation to &orporations later in t'is 2,$1)ent a/ter $e&i$in1 5'et'er t'e #o,rt a ;uo 5as &orre&t in r,lin1 t'at t'e respon$ent 5as H not resi$ent 5it'in its area o/ 2,ris$i&tion6 B,t it )a4 *e as 5ell to sa4 at t'is 2,n&t,re t'at in t'e &ase o/ #inister o+ the Interior v Cowley 7919.. (1) SA <(: (!) Broo)e J0, in )4 respe&t/,l opinion, erre$ (at <11% - H) 5'en 'e state$ t'at 'e 5as
7666 not prepare$ to a&&ept t'e *roa$ r,le t'at a #o,rt 5ill al5a4s I 'ave 2,ris$i&tion in a &lai) so,n$in1 in )one4 a1ainst a $e/en$ant 5'o is $o)i&ile$ 5it'in its area o/ 2,ris$i&tion76
I /,rt'er a1ree 5it' t'e vie5 expresse$ *4 Polla! (lo$ $it at 41, note 1) t'at no 2,sti/i&ation exists /or t'e $o,*t expresse$ *4 Mason J0 in =oord v =oord 1924 3 D 81 as to 5'et'er $o)i&ile 5it'o,t resi$en&e or p'4si&al presen&e is a s,//i&ient 1ro,n$ /or 2,ris$i&tion in an a&tion J in 5'i&' 1991 (1) SA p488 HO"=T"> JA 2,$1)ent so,n$in1 in )one4 is &lai)e$6 At 41 Polla! &ites in t'is &onne&tion t'e a,t'orit4 o/ !oo$t Co((entaries on the Pande$ts at .61@ an$ Cro)ans Tra$taat de =oro Co(petenti (16IC64) 5'o states?
A
7"n is so$ani1en 0ersoon &onveni*el voor $ien >e&'ter, on$er 5ien J,ris$i&tie '4 si2n $o)i&ili,) 1e+oren 'ee/t, 'et F4 $at '4 al-$aar 1evon$en 5er$ personeli2+, o/te niet67 B
In )4 vie5 t'e le1al position is &orre&tl4 s,))arise$ t',s *4 8ors4t' Private International Law 2n$ e$ (199() at 1:. - ;?
70rovi$e$ t'at t'e $e/en$ant is an in$ola o/ t'e &o,rt7s area o/ 2,ris$i&tion, t'e &o,rt 5ill *e prepare$ to 'ear t'e &ase6666 A&&or$in1l4, i/ t'e $e/en$ant is eit'er $o)i&ile$ or resi$ent in t'e area, t'is 5ill *e a s,//i&ient 2,ris$i&tional &onne&tin1 /a&tor6 # !eit'er o/ t'ese re9,ire)ents pre$i&ates t'e a&t,al p'4si&al presen&e o/ t'e $e/en$ant 5it'in t'e &o,rt7s area6 I/ t'e $e/en$ant is present, 'e )a4 *e *ro,1't to &o,rt *4 s,))ons in t'e or$inar4 )anner@ i/ 'e is a*sent, t'en, s,*2e&t to t'e >,les o/ #o,rt, s,))ons )a4 *e e//e&te$ *4 e$i&tal &itation or s,*stit,te$ servi&e, as t'e &ase )a4 *e6 Do)i&ile an$ resi$en&e s,11est no )ore t'an a notional &onne&tion 5it' t'e D &o,rt7s area6 A*sen&e is relevant onl4 in re1ar$ to t'e pro&e$,ral )atter o/ servi&e67
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In t'e instant )atter M4*,r1' AJ, in ,p'ol$in1 t'e respon$ent7s o*2e&tion to t'e &o)peten&e o/ t'e trial #o,rt, $e&line$ to /ollo5 an earlier 2,$1)ent in Dairy Board v John T Rennie & Co (Pty) Ltd19:; (<) SA :;8 (3) in 5'i&' "lo// J 'a$ $e&i$e$ t'at in la5 a So,t' A/ri&an $o)esti& &o)pan4 resi$es at t'e pla&e o/ its re1istere$ o//i&e6 " Heno&'s*er1 9n the Co(panies 8$t 4t' e$ (198.) vol 1 at 2.; s,*)its t'at in t'e Dairy Board &ase supra t'e #o,rt rea&'e$ a 5ron1 &on&l,sion@ an$ t'at /or p,rposes o/ &o))on la5 2,ris$i&tion a $o)esti& &o)pan4 resi$es at its prin&ipal pla&e o/ *,siness (ie its a$)inistrative &entre)6 In t'e Dairy Board &ase )eetin1s o/ t'e $e/en$ant &o)pan47s *oar$ o/ 8 $ire&tors 5ere 'el$ &'ie/l4 in D,r*an 5'ere )ost o/ its $ire&tors live$6 T'e *,siness o/ t'e $e/en$ant 5as &ontrolle$ /ro) D,r*an6 Ho5ever, t'e $e/en$ant 'a$ its re1istere$ o//i&e in Jo'annes*,r1, an$ t'e plainti// instit,te$ its a&tion (/or en/or&e)ent o/ an ,n$erta+in1 )a$e *4 t'e $e/en$ant in ter)s o/ s <(9(1)(a) o/ t'e Mer&'ant S'ippin1 A&t .: o/ % 19.1) in t'e 3it5atersran$ o&al Division6 Inas),&' as t'e &a,se o/ a&tion 'a$ not arisen in t'e 3it5atersran$ o&al Division t'e trial #o,rt 5as &o)petent to 'ear t'e a&tion onl4 i/ in la5 t'e $e/en$ant 7resi$e$7 5it'in its 2,ris$i&tion6 In t'e &o,rse o/ 'is 2,$1)ent "lo// J re)ar+e$ at :;9% - H?
H
7As to t'e si1ni/i&an&e o/ t'e /a&t o/ t'e sit,ation o/ t'e re1istere$ o//i&e o/ a &o)pan4, 0olla+ The Law o+ Jurisdi$tion at 94 - . states?
GIn t'e nor)al &ase t'e re1istere$ o//i&e an$ t'e prin&ipal pla&e o/ a &o)pan4 are one an$ t'e sa)e pla&e6 T'e4 )a4, 'o5ever, *e $i//erent, an$ in s,&' &ase t'e sit,ation o/ t'e prin&ipal pla&e o/ *,siness an$ not t'at o/ t'e re1istere$ o//i&e is t'e relevant /a&tor /or t'e p,rposes o/ 2,ris$i&tion in an a&tion /or a 2,$1)ent so,n$in1 I in )one4 a1ainst t'e &o)pan46G
!o a,t'orit4 is 9,ote$ /or t'is proposition, 'o5ever, an$ t'ere is, as /ar as I 'ave *een a*le to as&ertain, no $e&i$e$ &ase in 5'i&' it 5as lai$ $o5n t'at t'e pla&e 1iven as t'e re1istere$ a$$ress o/ a &o)pan4 in&orporate$ in So,t' A/ri&a is not t'e pla&e 5'ere t'e &o)pan4 resi$es or is67 "lo// J $istin1,is'e$ Be$!ett<s &ase supra in 5'i&', so o*serve$ t'e %)?
J
learne$ J,$1e (at ::(8 -
1991 (1) SA p489
HO"=T"> JA
A
7666 (T)'e #o,rt $i$ not 'ave to &onsi$er t'e 9,estion 5'et'er a &o)pan4 )i1't not *e sai$ to resi$e or *e 5'ere its re1istere$ a$$ress is@ it 'a$ )erel4 to $eal 5it' t'e 9,estion 5'et'er a &orporation 5it' a /ir)l4 esta*lis'e$ resi$en&e in t'e sense $es&ri*e$ in t'e a*ove-9,ote$ passa1e7 (ie 5'ere its 1eneral a$)inistration is &entre$) 7&o,l$ a&9,ire a se&on$ resi$en&e *4 reason o/ 'avin1 a /,rt'er pla&e o/ *,siness else5'ere6 T'e pro*le) 5it' 5'i&' I a) presentl4 &on&erne$ is ,n,s,al B /or t'e reason, as is pointe$ o,t *4 Polla! (supra ), t'at it is reasona*le to s,ppose t'at a &o)pan4 5ill nor)all4 sele&t as its re1istere$ 'ea$ o//i&e its prin&ipal pla&e o/ *,siness6 An$ I $o not t'in+ t'at is t'e sort o/ sit,ation to 5'i&' t'e learne$ J,$1e o/ Appeal a$$resse$ 'is )in$ 5'en expressin1 'i)sel/ as 'e $i$67
ater in 'is 2,$1)ent "lo// J (at ::1B - D) &ite$ provisions o/ t'e # #o)panies A&t 5'i&' pres&ri*e t'at t'e re1istere$ o//i&e is t'e pla&e at 5'i&' all pro&ess a1ainst a &o)pan4 )a4 *e serve$@ an$ 5'ere are +ept s,&' o//i&ial $o&,)ents an$ re&or$s appertainin1 to t'e &o)pan4 as t'e )in,te *oo+ o/ its 1eneral )eetin1s@ t'e re1ister o/ allot)ent o/ s'ares@ t'e re1ister o/ )e)*ers an$ $ire&tors an$ o//i&ers@ t'e re1ister o/ atten$an&e o/ )eetin1s o/ $ire&tors an$ )ana1ers@ t'e re1ister o/ D /ixe$ assets, an$ so /ort'6 S,&' provisions le$ "lo// J to $ra5 t'e in/eren&e (at ::1D - ") t'at t'e e1islat,re 'a$ inten$e$ to en$o5 t'e re1istere$ o//i&e 5it' t'e 9,alit4 o/ *ein1 t'e pla&e to 5'i&' t'e 5orl$ )i1't loo+ as t'e &o)pan47s le1al 'o)e an$ a$)inistrative &entre6 In t'e opinion o/ t'e learne$ J,$1e t'is vie5 o/ t'e )atter 5as rein/or&e$ *4 " &onsi$erations o/ &o))er&ial &onvenien&e an$ expe$ien&46 At ::1" - H 'e re)ar+e$?
7666 (T)o vie5 t'e re1istere$ o//i&e as t'e resi$en&e o/ a &o)pan4 is to &reate &ertaint4 an$ to *rin1 a*o,t &o))er&ial &onvenien&e6666 To 'ol$ t'at t'e re1istere$ o//i&e is t'e pla&e o/ resi$en&e /or p,rpose o/ 2,ris$i&tion is to re)ove all $o,*t as to t'e #o,rt in 5'i&' a person inten$in1 to s,e a &o)pan4 &on$,&tin1 *,siness at vario,s 8 pla&es )a4 $o so6 In t'is re1ar$ it is not inappropriate to re)ar+ t'at in t'ese $a4s &o)panies so)eti)es &on$,&t t'eir a//airs so t'at it )a4 *e $i//i&,lt to $eter)ine 5'ere its G1eneral a$)inistration is &entre$G6 An$ alt'o,1' it )a4 in /a&t 'ave *een tr,e in 1912 t'at a &o)pan4 an$ a person 'a$ onl4 one resi$en&e, one /in$s it sai$ in 0al)er7s Co(pany Law 21st e$ at ;; t'at?
% GMoreover,
a &o)pan4 - li+e an in$ivi$,al - )a4 'ave several resi$en&es at t'e sa)e ti)e6G
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In )4 vie5, a &o)pan4 re1istere$ in So,t' A/ri&a resi$es in la5 5'ere t'e re1istere$ o//i&e is6 I/ its prin&ipal pla&e o/ *,siness is sit,ate$ else5'ere it )a4 also resi$e at t'e latter pla&e6 I a&&or$in1l4 'ol$ t'at t'is #o,rt 'as 2,ris$i&tion in t'e present )atter67 A1ainst t'e *a&+1ro,n$ s+et&'e$ a*ove it is ne&essar4 no5 to loo+ )ore &losel4 at t'e reasons 5'i&' pro)pte$ t'e #o,rt a ;uo to ,p'ol$ t'e respon$ent7s o*2e&tion to t'e 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division6 In 'is 2,$1)ent M4*,r1' AJ relie$ ,pon t'e di$tu( o/ Innes JA in Be$!ett<s &ase 5'i&' 'as alrea$4 *een 9,ote$ *4 )e@ an$ 5'i&' 5as $is&,sse$ *4 "lo// J in t'e Dairy Board &ase supra6 Be$!ett<s &ase is I not, I &onsi$er, 1er)ane to t'e iss,e in t'e present appeal6 T'e ,lti)ate &on&l,sion at 5'i&' t'is #o,rt arrive$ in Be$!ett<s &ase 5as a li)ite$ one6 Innes JA ro,n$e$ o// 'is 2,$1)ent (at <<9) 5it' t'e /ollo5in1 s,&&in&t re)ar+s?
H
78or t'e p,rpose o/ t'is &ase it is not ne&essar4 to sa4 )ore t'an t'at a &o)pan4 s'o,l$ not *e &o)pelle$ to a&&ept servi&e an45'ere, save J at its &entral o//i&e, o/ 1991 (1) SA p496
HO"=T"> JA pro&ess t'e o*2e&t o/ 5'i&' is to en/or&e or re&over $a)a1es in respe&t o/ a &ontra&t entere$ into 5it' t'e o//i&ials o/ its &entral a$)inistration67
A
M4*,r1' AJ /,rt'er &onsi$ere$ t'at 'e 5as *o,n$ *4 t'e Transvaal 8,ll Ben&' $e&ision in 'ri(shaw v #i$a #ines Ltd 1912 T0D 4.(6 It see)s to )e, 5it' respe&t, t'at 'avin1 re1ar$ to t'e onl4 iss,e 5'i&' t'ere arose B t'e 2,$1)ent in t'at &ase is not 'elp/,l in resolvin1 t'e pro*le) 5'i&' &on/ronte$ t'e learne$ J,$1e in t'e instant )atter6 In t'e 'ri(shaw &ase t'e $e/en$ant 5as a /orei1n &o)pan4 $ire&te$ an$ &ontrolle$ in "n1lan$6 It o5ne$ *ase )etal &lai)s in t'e Jo,tpans*er1 5'i&' 'a$ *een )ana1e$ *4 t'e plainti//6 T'e plainti// s,e$ t'e $e/en$ant /or arrear 5a1es in t'e &o,rt o/ t'e &ivil )a1istrate at Jo'annes*,r16 As a /orei1n &o)pan4 t'e # $e/en$ant 'a$ &o)plie$ 5it' s 198 o/ A&t <1 o/ 19(9 *4 /ilin1 5it' t'e Transvaal >e1istrar o/ #o)panies t'e na)e o/ a person a,t'orise$ to a&&ept servi&e o/ pro&ess lo&all4 on *e'al/ o/ t'e $e/en$ant@ an$ t'e s,))ons 5as serve$ at s,&' person7s re1istere$ a$$ress in Jo'annes*,r16 T'e onl4 point in t'e &ase 5as 5'et'er or not t'e $e/en$ant 5as a person D 7resi$in1 or &arr4in1 on *,siness7 in Jo'annes*,r1 5it'in t'e )eanin1 o/ t'e Ma1istrates7 #o,rts 0ro&la)ation 21 o/ 19(26 T'e )a1istrate $e&i$e$ t'at t'e $e/en$ant neit'er resi$e$ nor &arrie$ on *,siness at Jo'annes*,r1 at t'e ti)e o/ t'e iss,e o/ s,))ons an$ 'e $is)isse$ t'e s,))ons6 T'e 8,ll Ben&' &onsi$ere$ t'at t'e )a1istrate7s $e&ision 5as ri1't an$ it $is)isse$ t'e appeal to it6 " Apart /ro) t'e /a&t t'at 'e /elt 'i)sel/ *o,n$ *4 t'e 'ri(shaw &ase supra, M4*,r1' AJ 5as /,rt'er )in$e$ to r,le in /avo,r o/ t'e respon$ent *4 invo+in1 a1ainst t'e appellant t'e prin&iple o/ e//e&tiveness6 In t'is &onne&tion t'e learne$ J,$1e re)ar+e$?
7It see)s to )e to *e )ore in +eepin1 5it' t'at prin&iple t'at s 8 19(1)(a) o/ t'e A&t s'o,l$ *e interprete$ to )ean t'at, in t'e &ase o/ a &o)pan4, its resi$en&e is 5'ere it &arries on its )ain *,siness an$ not 5'ere its re1istere$ o//i&e is, 5'en its re1istere$ o//i&e is not at its prin&ipal pla&e o/ *,siness67
T'is last r,)ination $oes not, 5it' respe&t, &o))en$ itsel/ to )e6 I/ t'ere s'o,l$ *e /o,n$ to *e present in t'e instant &ase an4 o/ t'e re&o1nise$ &onne&tin1 /a&tors s,//i&ient to /o,n$ 2,ris$i&tion, t'en, so % it see)s to )e, t'e position o/ t'e respon$ent is s,&' t'at t'e $o&trine o/ e//e&tiveness 5ill not )ilitate a1ainst an a&t,al exer&ise o/ t'e #o,rt7s 2,ris$i&tion6 In$ee$, as I s'all tr4 to s'o5 later in t'is 2,$1)ent, t'e )atter stan$s ver4 $i//erentl46 T'e ar1,)ents a$$resse$ to ,s )a4 *e s'ortl4 state$6 A$optin1 t'e H &riti&is) levelle$ *4 )eno$hsber" (op $it ), Mr Blieden /or t'e respon$ent ,r1e$ ,pon ,s t'at t'e 2,$1)ent in t'e Dairy Board &ase supra &on/,se$ t'e &on&ept o/ a )ere pla&e at 5'i&' pro&ess an$ noti&es )i1't *e serve$ ,pon a &o)pan4 5it' t'e ver4 $i//erent &on&ept o/ 2,ris$i&tion as &onte)plate$ *4 s 19 o/ t'e S# A&t@ an$ t'at t'e #o,rt a ;uo 'a$ &orre&tl4 $e&line$ to /ollo5 t'e 2,$1)ent o/ "lo// J in t'at &ase6 A I s,*)ission set /ort' in 'is 5ritten 'ea$s o/ ar1,)ent 5'i&' so,1't to rel4 on t'e $o&trine o/ e//e&tiveness 5as a*an$one$ *4 Mr Blieden, 5isel4 I t'in+, in t'e &o,rse o/ 'is ar1,)ent *e/ore ,s6 Mr %haw, 5'o appeare$ /or t'e appellant, s,*)itte$ t'at t'ere 5as ),&' to *e sai$ /or t'e 1eneral approa&' a$opte$ *4 "lo// J in t'e Dairy Board &ase@ an$ 'e &onten$e$ t'at in t'at &ase t'e o*2e&tion *4 t'e $e/en$ant to t'e J 2,ris$i&tion o/ t'e
1991 (1) SA p491
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HO"=T"> JA
A 3it5atersran$ o&al Division 'a$ *een properl4 $is)isse$6 Ho5ever, &allin1 to )in$ t'e intri&ate 5e*5or+ o/ t'e "n1lis' le1al prin&iples 1overnin1 t'e s,*2e&t, Mr %haw o5ne$ to *ein1 5ar4 o/ t'e &on&ept o/ 7resi$en&e7 in relation to So,t' A/ri&an $o)esti& &o)panies6 S'4in1 a5a4 /ro) t'e 5or$ 7resi$in17 in s 19(1) o/ t'e S# A&t, 'e pre/erre$ to la4 stress on t'e 5or$s 7or *ein1 in76 A )eanin1 ot'er (an$ a re9,ire)ent B )ore /lexi*le) t'an 7resi$en&e7 s'o,l$ *e assi1ne$ to t'e 5or$s 7*ein1 in76 #o,nsel s,11este$ t'at, 5'ile t'e p'rase 7*ein1 in7 si1ni/ie$ so)e sort o/ 7presen&e7, it 5as nevert'eless a presen&e less 'a*it,al an$ )ore ep'e)eral t'an t'at &o)pre'en$e$ *4 t'e 5or$ 7resi$en&e76 T'is less ri1oro,s re9,ire)ent, so it 5as sai$, 5as a)pl4 satis/ie$ *4 t'e lo&ation o/ a $o)esti& &o)pan47s re1istere$ o//i&e 5it'in a parti&,lar # area6 On t'is narro5 1ro,n$ &o,nsel /or t'e appellant invite$ ,s to $i//er /ro) t'e &on&l,sion at 5'i&' t'e #o,rt a ;uo arrive$6 8or reasons 5'i&' /ollo5 I a) ,na*le to a&&e$e to t'is ar1,)ent6
In %$hli((er v Risin"<s -,e$utri, (supra ) t'e $e/en$ant live$ in 0retoria6 S'e 'a$, 'o5ever, t'e )ont'l4 tenan&4 o/ a 'o,se in 8or$s*,r16 D T'is 'o,se s'e s,*-let, save /or a sin1le roo) 5'i&' s'e reserve$ /or 'er o5n ,se6 On an avera1e s'e visite$ Jo'annes*,r1 on&e a 5ee+ to &ons,lt 'er le1al a$visers, an$ o&&asionall4 s'e slept in t'e roo)6 T'e 2,ris$i&tion o/ t'e 3it5atersran$ Hi1' #o,rt $epen$e$ (as $i$ t'e 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division in Be$!ett<s &ase supra ) on t'e provisions o/ t'e Transvaal A$)inistration o/ J,sti&e 0ro&la)ation, 19(26 T'e plainti// s,e$ t'e $e/en$ant in t'e 3it5atersran$ Hi1' #o,rt an$ t'e latter7s po5er to 'ear t'e a&tion $epen$e$ on 5'et'er or not t'e $e/en$ant 5as a person 7resi$in1 or *ein1 5it'in7 t'e #o,rt7s area6 Alle1in1 t'at s'e resi$e$ in 0retoria, t'e $e/en$ant o*2e&te$ to t'e #o,rt7s 2,ris$i&tion6 T'e o*2e&tion 5as 8 s,staine$6 Havin1 9,ote$ t'e relevant provisions o/ t'e 19(2 pro&la)ation, Bristo5e J sai$ t'e /ollo5in1 (at 11()?
7It 5as &onten$e$ t'at t'ese se&tions ta+en to1et'er 1ive t'is #o,rt 2,ris$i&tion over all persons Gresi$in1 or *ein1G 5it'in its $istri&t, an$ t'e ar1,)ent t,rne$ )ainl4 on 5'et'er 'avin1 a roo) 5it'in t'e 2,ris$i&tion &onstit,te$ G*ein1G 5it'in it6 On &onsi$eration I $o,*t % 5'et'er t'is ar1,)ent is so,n$6 Se&tion 1; 1ives t'e S,pre)e #o,rt in t'e /irst pla&e, G&o1nisan&e o/ all pleasG 5'i&' I ta+e to )ean pleas o/ t'e #ro5n6 It is /ro) t'is t'at it $erives its &ri)inal 2,ris$i&tion6 !ext it 1ives t'e #o,rt 2,ris$i&tion in all &ivil &a,ses arisin1 5it'in t'e &olon46 8ro) t'is it $erives its &ivil 2,ris$i&tion6 T'ir$l4, it 1ives it 2,ris$i&tion over all persons resi$in1 or *ein1 5it'in t'e &olon46 T'is I rea$ as )erel4 s,pple)entin1 t'e &ri)inal an$ &ivil H 2,ris$i&tion alrea$4 1iven, *4 &on/errin1 on t'e #o,rt s,&' po5ers over people in t'e &olon4 as are ne&essar4 to ena*le it to 1ive e//e&t to its senten&es, 2,$1)ents, an$ or$ers6 I/ t'is is t'e tr,e vie5, t'en t'e 2,ris$i&tion o/ t'e S,pre)e #o,rt in a &ivil pro&ee$in1 $epen$s on 5'et'er it is a &a,se or pro&ee$in1 Garisin1G in t'e &olon4, an$ not on 5'et'er t'e $e/en$ant is Gresi$in1 or *ein1G 5it'in t'e &olon4@ an$ *4 parit4 o/ reasonin1 t'e 2,ris$i&tion o/ t'e Hi1' #o,rt in a &ivil pro&ee$in1 $epen$s on 5'et'er it is a &a,se I or pro&ee$in1 arisin1 5it'in t'e $istri&t o/ t'e Hi1' #o,rt, not on 5'et'er t'e $e/en$ant is Gresi$in1 or *ein1G 5it'in s,&' $istri&t6 T'e *roa$ res,lt o/ t'is is t'at not'in1 t,rns on t'e 5or$s Gor *ein1G67
In t'e passa1e 2,st 9,ote$ it see)s to )e, 5it' respe&t, t'at *4 sa4in1 t'at t'e #o,rt7s 2,ris$i&tion $i$ not $epen$ on 5'et'er t'e $e/en$ant 5as 7resi$in1 or *ein1 5it'in7 t'e #o,rt7s $istri&t, t'e learne$ J,$1e J &learl4 $i$
1991 (1) SA p492
HO"=T"> JA
A not inten$ to &onve4 t'at t'e /a&t o/ resi$en&e 5as irrelevant to t'e in9,ir46 T'at 'e &o,l$ 'ave entertaine$ no s,&' intention is )a$e 9,ite plain, /or exa)ple, *4 t'e /ollo5in1 passa1e later (at 112) in 'is 2,$1)ent?
7T'e 9,estion 5'i&' I 'ave to $e&i$e is t'ere/ore si)pl4 5'et'er s'e resi$es 5it'in or is an in'a*itant o/ t'e $istri&t &overe$ *4 t'e B 2,ris$i&tion o/ t'e Hi1' #o,rt, or 5'et'er s'e is a )ere pere"rinus67
It see)s to )e t'at 5'at Mr J,sti&e Bristo5e 'ere 'a$ in )in$ 5as si)pl4 t'e prin&iple ()ore expli&itl4 en,n&iate$ *4 t'is #o,rt in 1911 in %teytler 79 v =it>"erald (supra )) t'at one sit,ation in 5'i&' a 7&a,se arises7 is 5'ere t'e $e/en$ant resi$es 5it'in t'e #o,rt7s area an$ is t',s a)ena*le to s,&' /or,)6 # T'e reasonin1 o/ Bristo5e J 5as applie$ in Ban! o+ 8+ri$a v Cohen 19(8 TH .2, a &ase 5'i&' is )ost pertinent to t'e point no5 *ein1 $is&,sse$6 T'ere t'e plainti// s,e$ t'e $e/en$ant in Jo'annes*,r1 /or provisional senten&e on a pro)issor4 note 5'i&' 'a$ *een )a$e in Ki)*erle46 T'e $e/en$ant 5as a resi$ent o/ Ki)*erle4 5'o 'a$ &o)e to Jo'annes*,r1 on a D visit6 It 5as ar1,e$ /or t'e plainti// t'at t'e #o,rt 'a$ 2,ris$i&tion to 'ear t'e &ase, *e&a,se o/
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t'e 5or$s 7or *ein17 in s 1; o/ t'e 0ro&la)ation6 T'e ar1,)ent 5as re2e&te$ *4 #,rle5is J, 5'o sai$ t'at t'e 5or$s o/ s 1; 'a$ &o)e ,n$er &onsi$eration in %$hli((er<s &ase supra, an$ t'at 'e a&&epte$ t'e interpretation t'ere pla&e$ ,pon t'e) *4 Bristo5e J6 (#/ also t'e re)ar+s o/ %reen*er1 J in :an Cyl v :an Cyl " /012 LD /0? at /0D E F and /00G) 3it' t'e a$vent o/ Dnion t'e le1al position state$ a*ove re)aine$ ,n&'an1e$ in relation to t'e vario,s Divisions o/ t'e S,pre)e #o,rt 5'i&' too+ t'e pla&e o/ t'e &olonial S,pre)e #o,rts6 !or $i$ t'e A$)inistration o/ J,sti&e A&t 2: o/ 1912 *rin1 a*o,t an4 &'an1e in t'e 8 position6 Its provisions an$ t'eir e//e&t 5ere s,))arise$ *4 Trollip JA in -state 8"ents Board v Le!19:9 (<) SA 1(48 (A) at 1(;1B - H6 It is ,nne&essar4 to repeat 5'at 5as sai$ t'ere6 I respe&t/,ll4 a1ree 5it' t'e vie5 expresse$ *4 Bristo5e J in %$hli((er<s &ase supra t'at in t'e 19(2 Transvaal 0ro&la)ation not'in1 % t,rne$ on t'e 5or$s 7*ein1 5it'in76 T'e4 )erel4 a//ir) *,t $o not enlar1e t'e 2,ris$i&tion en$o5e$ *4 7&a,ses arisin176 T'e sa)e applies to t'e 5or$s 7*ein1 in7 in s 19(1) o/ t'e S# A&t6 A si)ilar vie5 o/ t'e )atter is expresse$ *4 =orsyth (op $it )6 Dealin1 5it' t'e resi$en&e o/ nat,ral persons /or 2,ris$i&tional p,rposes t'e learne$ a,t'or states (at 1;4 - .)?
7In s 19(1)(a) o/ t'e S,pre)e #o,rt A&t, it is provi$e$ t'at t'e H vario,s Divisions o/ t'e S,pre)e #o,rt s'all 'ave 2,ris$i&tion over Gall persons resi$in1 or *ein1 inG t'eir areas o/ 2,ris$i&tion@ *,t t'e ter) Gresi$in1G is not $e/ine$ in t'e A&t6 Instea$ it ),st *e $e/ine$ in ter)s o/ t'e &o))on la56 As 5e 'ave seen, s 19(1)(a) 'as *een interprete$ to )ean little )ore t'an t'at t'e Divisions o/ t'e #o,rt are li)ite$ to t'eir territorial 2,ris$i&tion a&&or$in1 to t'e prin&iples to *e /o,n$ in t'e &o))on la56 In parti&,lar, t'e #o,rts 'ave re/,se$ to I e9,ate Gresi$in1G in s 19 5it' G*ein1G, ie t'e4 'ave not &onsi$ere$ t'eir 2,ris$i&tion to *e $epen$ent either on )ere p'4si&al presen&e or on resi$en&e6 A stri&t $istin&tion is al5a4s $ra5n *et5een t'ese t5o &on&epts67
I/, t'en, a parti&,lar Division o/ o,r S,pre)e #o,rt is not en$o5e$ 5it' 2,ris$i&tion over a nat,ral person 5'o is an in$ola o/ t'e >ep,*li& *,t a pere"rinus 5it'in its area o/ 2,ris$i&tion, solel4 *e&a,se o/ s,&' J person7s
1991 (1) SA p492
HO"=T"> JA
A presen&e (7*ein17) 5it'in t'at area at t'e ti)e o/ servi&e o/ a s,))ons ,pon 'i), $oes not t'e sa)e prin&iple appl4 in t'e &ase o/ a &o)pan4H I/ t'e &,sto)ar4 arti/i&ial analo14 *et5een nat,ral an$ 2,risti& persons, 5'i&' is to *e /o,n$ in t'e &ases on t'e topi& o/ 2,ris$i&tion, is applie$, t'e ans5er ),st *e 4es6
Sin&e 7resi$en&e7 is a &on&ept *ase$ on t'e 'a*its o/ a nat,ral )an, B t'e notion o/ a &o)pan47s 7resi$en&e7, as 'as alrea$4 *een pointe$ o,t, is ne&essaril4 a so)e5'at a*str,se an$ ne*,l,s one6 Inso/ar as t'e la5 re9,ires t'e &on&ept to *e assi1ne$ to a &orporation, 'o5ever, it see)s to )e t'at t'e i$ea o/ t'e re1istere$ o//i&e o/ a $o)esti& So,t' A/ri&an &o)pan4 as its 7'o)e7 represents a 2,risti& a*stra&tion 5'i&' is *4 no )eans ,nso,n$ in prin&iple6 In "n1lan$ t'e $e&isions in Cesena %ulphur # Co Ltd v 7i$holson (18:;) 1 "x Div 428 an$ Cal$utta Jute #ills Ltd v 7i$holson (18:;) 1 "x Div 4<: )ar+e$ t'e *e1innin1 o/ t'e ela*oration o/ a $i//erent $o&trine in "n1lan$6 T'e &o)pan4 &on&erne$ in ea&' &ase 5as a 2oint sto&+ &o)pan4 in&orporate$ in "n1lan$6 In *ot' &ases t'e ratio de$idendi 5as t'at t'e test o/ a &o)pan47s resi$en&e /or p,rposes o/ D In&o)e Tax 5as t'at o/ &ontrol@ a test later esta*lis'e$ *e4on$ $o,*t *4 t'e Ho,se o/ or$s in t'e &ase o/ De Beers Consolidated #ines Ltd v )owe A19(;B A# 4..6 In -"yptian Delta Land and Invest(ent Co Ltd v Todd A1929B A# 1 t'e In&o)e Tax #o))issioners 'el$ t'at an invest)ent &o)pan4 re1istere$ in "n1lan$, *,t &ontrolle$ /ro) a*roa$, 5as not resi$ent in " "n1lan$6 In a ,nani)o,s 2,$1)ent t'e #o,rt o/ Appeal 'el$ t'at a &o)pan4 re1,late$ *4 t'e 19(8 #o)panies A&t 'a$ a resi$en&e (t'o,1' not ne&essaril4 a sole resi$en&e) at its re1istere$ o//i&e6 3it' re/eren&e to t'e )an4 stat,tor4 re9,ire)ents i)pose$ on a &o)pan4 *4 t'e #o)panies (#onsoli$ation) A&t (19(8) or$ Han5ort' M> re)ar+e$ (see A1928B 1 KB at 1;: - 8)? 8
7I/ t'e )atter is to *e $eter)ine$ *4 analo14 I s'o,l$ a//ir) t'at a )an 5it' a lo&al 'a*itation an$ &o)pelle$ to $o &ertain a&ts in a&&or$an&e 5it' lo&al la5s666 &o,l$ not prevent t'e in/eren&e *ein1 $ra5n t'at 'e G+ept 'o)eG in t'at lo&alit467
Ho5ever, in t'e Ho,se o/ or$s it 5as ,nani)o,sl4 'el$ t'at in&orporation in "n1lan$ an$ a re1istere$ o//i&e in t'at &o,ntr4 $i$ % not, 5it'o,t )ore an$ as a le1al &onse9,en&e, )a+e a &o)pan4 resi$ent in "n1lan$ /or in&o)e tax p,rposes6 (An ill,)inatin1 $is&,ssion o/ t'e topi& o/ t'e resi$en&e o/ a &orporation in "n1lis' la5, to1et'er 5it' a &lose anal4sis o/ t'e &ase la5, is
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to *e /o,n$ in 8arns5ort' The Residen$e and Do(i$il o+ Corporations (19<9)6)

H T'e parti&,lar evol,tion in "n1lan$ o/ le1al r,les 1overnin1 t'e $eter)ination o/ a &o)pan47s resi$en&e not5it'stan$in1, it is 5ort'4 o/ note, I &onsi$er, t'at t'ere 'ave *een vario,s 2,$i&ial prono,n&e)ents in t'e "n1lis' #o,rts to t'e e//e&t t'at 5'en t'e pro*le) is vie5e$ p,rel4 as one o/ prin&iple, ,ntra))elle$ *4 2,$i&ial pre&e$ent an$ le1islative ena&t)ent, t'e notion t'at t'e resi$en&e o/ a &o)pan4 is its I re1istere$ o//i&e 'as ),&' to &o))en$ itsel/6 One s,&' exa)ple is provi$e$ *4 t'e di$tu( alrea$4 9,ote$ /ro) t'e 2,$1)ent o/ t'e Master o/ t'e >olls 5'en t'e -"yptian Delta &ase supra 5as *e/ore t'e #o,rt o/ Appeal6 T5o /,rt'er ill,strations )a4 ,se/,ll4 *e ta+en /ro) t'e spee&'es rea$ in t'e Ho,se o/ or$s 5'en t'e latter ,pset t'e 2,$1)ent o/ t'e #o,rt o/ Appeal6 In t'e &o,rse o/ 'is 2,$1)ent or$ B,&+)aster J sai$ (at <.)?
1991 (1) SA p494
HO"=T"> JA
A
7T'e $i//i&,lt4666 is $,e to t'e /a&t t'at resi$en&e is essentiall4 a &on$ition appli&a*le to )en, an$ t'e tests /or its $eter)ination, s,&' as livin1 an$ sleepin1, &an 'ave no proper &o,nterpart in an a*stra&t entit4 s,&' as an in&orporate$ &o)pan4 5'i&' &an neit'er live nor sleep6 It ),st, 'o5ever, *e ass,)e$ t'at a &o)pan4 has a resi$en&e, an$ i/ t'e 9,estion is loo+e$ at entirel4 apart /ro) a,t'orit4, I s'o,l$ 'ave B t'o,1't t'at t'e pla&e o/ t'e re1istere$ o//i&e 5as also t'e pla&e 5'ere t'e a*stra&tion +no5n as Ga &o)pan4G resi$e$67
At 4( or$ 3arrin1ton o/ #l4//e expresse$ 'i)sel/ as /ollo5s?

7In$epen$entl4 o/ a,t'orit4, an$ in t'e a*sen&e o/ an4 relevant provisions o/ t'e In&o)e Tax A&t, 1918 t'ro5in1 li1't on t'e )eanin1 attri*,te$ *4 t'e e1islat,re to t'e 5or$s Gresi$in1G an$ Gresi$entG as ,se$ in t'e A&t, I s'o,l$ pro*a*l4 'ave *een o/ t'e opinion t'at t'e # provisions o/ t'e #o)panies A&t to 5'i&' I 'ave re/erre$ lea$ to t'e &on&l,sion t'at, 5'atever ot'er resi$en&e t'e &o)pan4 )a4 'ave, t'e e1islat,re 'as provi$e$ t'at t'e re1istere$ o//i&e s'all *e a resi$en&e6
666
T'e &,),lative e//e&t o/ t'ese provisions apparentl4 &reates /or t'e &o)pan4 a stat,tor4 'o)e 5'ere it is to per/or) t'e &orporate /,n&tions D a*ove)entione$, an$ 5'ere it is re1ar$e$ as at all ti)es present an$ rea$4 to re&eive s,&' $o&,)ents an$ &o)),ni&ations as are le/t or sent t'ere67
T'e *roa$ line o/ reasonin1 p,rs,e$ *4 "lo// J in t'e Dairy Board &ase supra 5'i&' le$ 'i) to &on&l,$e t'at in So,t' A/ri&a a $o)esti& &o)pan4 in la5 resi$es at t'e pla&e o/ its re1istere$ o//i&e 'as alrea$4 *een exa)ine$6 It s'o,l$ *e a$$e$, 'o5ever, t'at in $is&,ssin1 t'e stat,tor4 " o*li1ation o/ a So,t' A/ri&an &o)pan4 to a&&ept servi&e o/ pro&ess at its re1istere$ o//i&e t'e learne$ J,$1e re1ar$e$ as si1ni/i&ant an$ 'e so,1't to rel4 ,pon t'e /a&t t'at in "n1lis' la5 servi&e o/ a 5rit represents t'e te&'ni&al /o,n$ation o/ 2,ris$i&tion6 In t'is &onne&tion (at ::( in +in - ::1) "lo// J re)ar+e$? 8
7T'is &orrelation *et5een t'e a$$ress at 5'i&' servi&e )a4 *e e//e&te$ an$ 2,ris$i&tion over a &orporation is, I t'in+, in a&&or$an&e 5it' 5'at 5as sai$ *4 #'es'ire Private International Law :t' e$ at 1:4 as /ollo5s? GI/ 'e is /o,n$ 'ere 'e &an *e serve$ 'ere an$ at &o))on la5 t'e exer&ise o/ 2,ris$i&tion $epen$s ,pon servi&e6 It is t'e sa)e in t'e &ase o/ a &orporation6G7
% T'e so,n$ness o/ t'is line o/ ar1,)ent 'as *een 9,estione$, al*eit 5it' 'is &,sto)ar4 s&'olarl4 $i//i$en&e, *4 0ro/essor "llison Ka'n6 In The 8nnual %urvey o+ %8 Law (19:;) 'e 5rites (at .24)?
73it' respe&t, one 5on$ers 'o5 pers,asive t'is r,le is? 2,ris$i&tion in a&tions in persona( *ase$ on servi&e o/ t'e 5rit, so *asi& to "n1lis' H la5, is not +no5n to o,r la56 As /or t'e 1eneral attit,$e o/ "n1lis' la5 to t'e resi$en&e o/ a &orporation, it appears to var4 5it' t'e iss,e involve$6 In t'e "n1lis' la5 o/ taxation, 5'ere it is a vital &on&ept, t'e resi$en&e is at t'e &entre o/ t'e )ana1e)ent an$ &ontrol o/ t'e &orporation7s a//airs, 5it' t'e proviso t'at i/ &ontrol is virt,all4 e9,all4 $ivi$e$ *et5een t5o &entres, t'e &o)pan4 'as t5o resi$en&es, one at ea&' &entre (Di&e4 L Morris on The Con+li$t o+ Laws 9t' e$ (19:<) at :(< - .@ #'es'ire7s Private International Law 8t' e$ (19:() at 18; - 9(@ J I H # Morris The Con+li$t o+ Laws (19:1) at <2@ > H %raveson Con+li$t o+ Laws :t' e$ (19:4) at 224)6 B,t in t'e "n1lis' la5 relatin1 to 2,ris$i&tion in a&tions in persona( - an$ onl4 /or t'at p,rpose - t'e resi$en&e o/ a &o)pan4 is $ee)e$ to *e 5'ere it 'as its re1istere$ o//i&e (Di$ey & #orris at 1::)67
(8or t'e sa+e o/ &o)pleteness it )a4 *e )entione$ t'at in "n1lan$ t'e appears to *e t'at a &o)pan4 re1istere$ ,n$er t'e 198.
&,rrent position
1991 (1) SA p493
HO"=T"> JA
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A #o)panies A&t is re1ar$e$ as present in "n1lan$ an$ servi&e o/ a 5rit )a4 *e e//e&te$ *4 sen$in1 it to t'e re1istere$ o//i&e o/ t'e &o)pan46 See #'es'ire L !ort'7s Private International Law 11t' e$ (198:) at 1886)
In )4 respe&t/,l vie5 t'e &riti&is) o/ 0ro/ Kahn 9,ote$ a*ove is 5ell-/o,n$e$6 Ma+in1 $,e allo5an&e /or it, 'o5ever, I nevert'eless /in$ attra&tive t'e re)ain$er o/ t'e reasonin1 o/ "lo// J an$ t'e &on&l,sion B to 5'i&' 'e 5as i)pelle$, na)el4 t'at /or p,rposes o/ $e&i$in1 in an a&tion /or a 2,$1)ent so,n$in1 in )one4 5'et'er a parti&,lar Division o/ t'e S,pre)e #o,rt o/ So,t' A/ri&a 'as po5er to entertain le1al pro&ee$in1s a1ainst it, a $o)esti& So,t' A/ri&an &o)pan4 7resi$es7 5'ere its re1istere$ o//i&e is6 In t'e Dairy Board &ase "lo// J expresse$ t'e /,rt'er opinion t'at, i/ s,&' a &o)pan47s prin&ipal pla&e o/ *,siness is sit,ate$ else5'ere t'an at its re1istere$ o//i&e, t'en t'e &o)pan4 )i1't in la5 also 7resi$e7 at t'e latter pla&e6 On t'is point too, an$ /or t'e reasons 'ere,n$er, I a1ree 5it' "lo// J6
#
It is tr,e t'at in Be$!ett<s &ase supra at <<4 Innes J sai$ in
relation to a &orporation t'at
7666 i/ t'e analo14 o/ a nat,ral person is to *e /ollo5e$, one 5o,l$ sa4 t'at it &o,l$ onl4 resi$e in one pla&e at one ti)e76
It see)s to )e, 5it' 1reat respe&t, t'at t'e so,n$ness o/ t'e a*ove-9,ote$ proposition is open to 9,estion6 In -, parte #inister o+ " 7ative 8++airs 1941 AD .< t'is #o,rt 5as &alle$ ,pon to 1ive a r,lin1 as to t'e )eanin1 o/ t'e 5or$ 7resi$es7 in t'e proviso to s 1((<) o/ t'e Bla&+ A$)inistration A&t <8 o/ 192:6 In $eliverin1 t'e 2,$1)ent o/ t'e #o,rt #entlivres JA re)ar+e$ at .8 - 9?
7666 (I)t is &lear on t'e a,t'orities t'at a person &an 'ave )ore 8 t'an one resi$en&e an$ s'o,l$ in t'at &ase *e s,e$ *e/ore t'e )a1istrate o/ t'e pla&e 5'ere 'e resi$es at t'e ti)e 5'en t'e s,))ons is iss,e$67
8or &ertain p,rposes "n1lis' la5 re&o1nises t'e possi*ilit4 o/ $,al resi$en&e in t'e &ase o/ &o)panies6 In %wedish Central Railway Co Ltd v Tho(pson A192.B A# 49. (H ) it 5as 'el$ t'at /or in&o)e tax p,rposes a % re1istere$ &o)pan4 &o,l$ 'ave )ore t'an one resi$en&e6 T'e )a2orit4 in t'e Ho,se o/ or$s &on&,rre$ in t'e opinion o/ or$ #ave #6 #o))entin1 ,pon t'e earlier $e&ision in t'e &ase o/ De Beers Consolidated #ines Ltd v )owe (supra ), or$ #ave sai$ at .(1?
7T'e e//e&t o/ t'is $e&ision is t'at 5'en t'e &entral &ontrol an$ )ana1e)ent a*i$es in a parti&,lar pla&e, t'e &o)pan4666 'as a H resi$en&e at t'at pla&e@ *,t it $oes not /ollo5 t'at it &annot 'ave a resi$en&e else5'ere6 An in$ivi$,al &an &learl4 'ave )ore t'an one resi$en&e666 an$ in prin&iple t'ere appears to *e no reason 5'4 a &o)pan4 s'o,l$ not *e in t'e sa)e position67
I 'ave 'a$ t'e a$vanta1e o/ rea$in1 t'e 2,$1)ent prepare$ in t'is appeal *4 )4 Brot'er !i&'olas6 !i&'olas AJA ta+es t'e vie5 t'at t'e I &on&l,sion o/ "lo// J t'at a &o)pan4 7resi$es7 5'ere its re1istere$ o//i&e is, is &ontrar4 to prin&iple an$ a,t'orit46 I a) ,na*le, 5it' respe&t, to s'are t'at vie56 !i&'olas AJA *ases 'is vie5 parti&,larl4 on t'ree &ases? -state Koot$her v Co((issioner +or Inland Revenue 1941 AD 2.;@ Be$!ett<s &ase supra @ an$ t'e 'ri(shaw &ase supra6 I s'all presentl4 &onsi$er ea&' o/ J t'ese &ases
1991 (1) SA p494
HO"=T"> JA
A in$ivi$,all4, *,t it is &onvenient to a&+no5le$1e, in 1eneral ter)s, t'at it 5as 'el$ in ea&' o/ t'e) t'at a &o)pan4 resi$es at t'e pla&e 5'ere its 1eneral a$)inistration is lo&ate$, ie at t'e seat o/ its &entral )ana1e)ent an$ &ontrol, /ro) 5'ere t'e 1eneral s,perinten$en&e o/ its a//airs ta+es pla&e, an$ 5'ere, &onse9,entl4, it is sai$ t'at it B &arries on its real or prin&ipal *,siness6 8or t'e sa+e o/ *revit4 I s'all re/er to t'is as t'e &o)pan47s 7pla&e o/ &entral &ontrol76 T'at a &o)pan4 resi$es at its pla&e o/ &entral &ontrol 5as a1ain a&&epte$ in :anderbiBl Par! )ealth Co((ittee and 9thers v ilson and 9thers19.( (1) SA 44: (A) at 4;; - :6 T'e prin&iple is a&&or$in1l4 5ell esta*lis'e$ in o,r la5, an$ I &an see no 5arrant /or $epartin1 /ro) it6 I a&&ept, # /,rt'er)ore, t'at it applies in respe&t o/ )atters o/ 2,ris$i&tion, 5it' t'e res,lt t'at t'e &o,rt o/ t'e area 5'ere t'e &o)pan47s pla&e o/ &entral &ontrol is sit,ate$ 5ill 'ave 2,ris$i&tion to entertain a )onetar4 &lai) a1ainst t'e &o)pan4 on t'e 1ro,n$ t'at it is resi$ent 5it'in t'e &o,rt7s area o/ 2,ris$i&tion6 On t'is approa&' it /ollo5s D t'at, i/ t'e &o)pan47s
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re1istere$ o//i&e is lo&ate$ else5'ere t'an at its pla&e o/ &entral &ontrol, a /in$in1 t'at t'e &o)pan4 is resi$ent at t'e pla&e o/ its re1istere$ o//i&e /or t'e p,rposes o/ 2,ris$i&tion ),st ne&essaril4 involve an a&&eptan&e o/ t'e prin&iple t'at a &o)pan4 &an /or s,&' p,rposes (ie in re1ar$ to 9,estions o/ 2,ris$i&tion) *e resi$ent at t5o pla&es at t'e sa)e ti)e6 In )4 2,$1)ent, t'e &ases t'at I 'ave )entione$ $o not pre&l,$e t'e a&&eptan&e o/ s,&' a prin&iple, as " I s'all en$eavo,r to s'o5 in a )o)ent, an$ I &onsi$er t'at t'is #o,rt s'o,l$ no5 approve it6 A&&or$in1l4 I /in$ t'at a &o)pan4 &an an$ $oes 'ave a $,al resi$en&e /or 2,ris$i&tional p,rposes, 5'ere its &entral &ontrol an$ its re1istere$ o//i&e are lo&ate$ at $i//erent pla&es6 In t'e &ase o/ -state Koot$her (supra ) t'e #o,rt 5as not &on&erne$ 8 5it' an4 9,estion relatin1 to 2,ris$i&tion an$ its 2,$1)ent $i$ not to,&' at all on t'e 9,estion no5 *ein1 $is&,sse$6 T'is is pertinentl4 $e)onstrate$ *4 t'e $e&ision in 8ppleby (Pty) Ltd v Dundas Ltd1948 (2) SA 9(. (")6 In t'at &ase a /orei1n &o)pan4, re1istere$ in "n1lan$ an$ 5it' its 'ea$ o//i&e in "n1lan$, 'a$ a *ran&' o//i&e in Jo'annes*,r1, 5'ere it &arrie$ on *,siness6 It 5as s,e$ in t'e "D on &ontra&ts % entere$ into 5it'in t'at #o,rt7s area o/ 2,ris$i&tion6 T'e iss,e /or $e&ision 5as 5'et'er t'e &o)pan4 resi$e$ in t'e Dnion 5it'in t'e )eanin1 o/ t'at p'rase in s . o/ t'e 1912 A&t6 It 5as 'el$ t'at it $i$6 Hoexter J sai$ (at 911 - 12)?
7#o,nsel /or t'e $e/en$ant relie$ ver4 stron1l4 on t'e &ase o/ -state Koot$her v Co((issioner +or Inland Revenue 1941 AD 2.;, in 5'i&' t'e H Appellate Division 'el$ t'at t'e Stan$ar$ Ban+ o/ SA t$ is not, /or t'e p,rposes o/ s 4(a) (ii) o/ t'e Deat' D,ties A&t 29 o/ 1922, a person or$inaril4 resi$ent in t'e Dnion6 It 5as 'el$ t'at t'e Stan$ar$ Ban+ o/ SA t$ resi$es in "n1lan$, 5'ere it is re1istere$ an$ 5'ere its &entral )ana1e)ent an$ &ontrol a&t,all4 a*i$e, an$ t'at it &o,l$ not a&9,ire a resi$en&e in t'e Dnion *4 'avin1 *ran&'es an$ &arr4in1 on *,siness 'ere6
I
T'at &ase, 'o5ever, $ealt 5it' $eat' $,ties an$ 5as not inten$e$ to 1overn t'e interpretation o/ t'e 5or$ Gresi$eG 5'en it o&&,rs in a stat,te &on&ernin1 2,ris$i&tion6 T'at it 5as not so inten$e$ )a4 *e in/erre$ /ro) t'e /ollo5in1 passa1e in t'e 2,$1)ent o/ 3ater)e4er JA at 2;1?
GT'ere are, 'o5ever, a n,)*er o/ &ases in 5'i&' t'e s,11estion 'as *een )a$e t'at a &orporation 7resi$es7 or even a&9,ires a 7$o)i&ile7 at t'e pla&e 5'ere its tra$e or *,siness is &arrie$ on, )eanin1 *4 J t'at p'rase t'e a&t,al operations 1991 (1) SA p495
HO"=T"> JA
A
5'i&' earn a pro/it an$ not t'e &entral &ontrol o/ t'ose operations6666 B,t t'ose &ases are all &ases in 5'i&' t'e 9,estion 5as 5'et'er t'e &orporations &on&erne$ 5ere a)ena*le to t'e 2,ris$i&tion o/ &o,rts in t'e Dnite$ Kin1$o), an$ it see)s &lear t'at t'e 5or$s 7resi$en&e7 an$ 7$o)i&ile7 5ere not ,se$ in t'e proper 2,risti& sense $eter)ine$ *4 &ases s,&' as t'e De Beers &ase6G 7
It is &lear /ro) t'e 2,$1)ent o/ Hoexter J at 91( - 11 t'at a $,al B resi$en&e o/ a &o)pan4 /or 2,ris$i&tional p,rposes is re&o1nise$ 5'en &onsi$eration o/ &onvenien&e re9,ires t'at to *e $one6 It is tr,e t'at t'e &ase &on&erne$ a /orei1n &o)pan4 5'i&' &arrie$ on *,siness in t'is &o,ntr4, *,t it is 5ort'4 o/ note t'at t'e learne$ J,$1e, 9,otin1 t'e re)ar+s o/ Innes J in Be$!ett<s &ase supra at <<8 &on&ernin1 t'e earlier # &ase o/ allis v The 'ordon Dia(ond #inin" Co Ltd ; H#% 4<, pointe$l4 o*serve$ (at 91() t'at t'e 9,estion 5as le/t open in Be$!ett<s &ase 5'et'er t'e sa)e prin&iple s'o,l$ *e applie$ also to $o)esti& &o)panies6 (I s'all revert to Be$!ett<s &ase on t'is point *elo56) In )4 opinion t'e 2,$1)ent in 8ppleby<s &ase s'o5s t'at t'e re&o1nition o/ a $,al resi$en&e o/ a $o)esti& &o)pan4, /or reasons o/ &onvenien&e in re1ar$ to D 9,estions o/ 2,ris$i&tion, 5o,l$ not i)pin1e on an4 prin&iple o/ o,r la56 In t'is &ontext no )atter o/ prin&iple (as oppose$ to )ere se)anti&s) is involve$ in re/errin1 to a &o)pan47s pla&e o/ &entral &ontrol as its resi$en&e 7in t'e proper 2,risti& sense7, as in Koot$her<s &ase supra, an$ to a $i//erent pla&e 5'ere it &arries on *,siness as its 7li)ite$ or partial7 resi$en&e, as in %wi+t v 7ational " Ban! o+ %outh 8+ri$a 192< O0D 24 at 2: (9,ote$ in 8ppleby<s &ase at 91() or as 7t'e /i&tion o/ separate resi$en&e7, as in ri"ht v %tutta+ord and Co 1929 "D 1( at <: (9,ote$ in 8ppleby<s &ase at 911)6 T'at *ein1 so, I &an per&eive no o*2e&tion in prin&iple, in t'e sa)e &ontext, to t'e re&o1nition o/ a separate resi$en&e o/ a $o)esti& &o)pan4 at t'e pla&e o/ its re1istere$ o//i&e, 5'ere t'at is sit,ate$ else5'ere t'an at its 8 pla&e o/ &entral &ontrol6 I t,rn to Be$!ett<s &ase supra, t'e /a&ts o/ 5'i&' 'ave alrea$4 *een note$6 T'e a)*it o/ t'e a&t,al $e&ision in t'at &ase 5as a ver4 li)ite$ one6 T'e $e&ision t'at t'e 3it5atersran$ o&al Division 'a$ no 2,ris$i&tion to entertain t'e a&tion s'o,l$ not in$is&ri)inatel4 *e exten$e$ in e//e&t *e4on$ t'e narro5 &on/ines o/ t'e /a&ts o/ t'e &ase6 % Inso/ar as Innes J 1in t'e &o,rse o/
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'is reasonin1 )a$e state)ents o/ an ostensi*l4 1eneral tenor, t'e4 s'o,l$ not *e applie$ to sit,ations to 5'i&' t'e learne$ J,$1e 5as not t'en a$$ressin1 'is )in$6 So, 5'en t'e learne$ J,$1e sai$ (at <<4) t'at 7t'e onl4 'o)e t'at a &orporation &an *e sai$ to 'ave7 5as at its pla&e o/ &entral &ontrol, an$ t'at 7one H 5o,l$ sa4 t'at it &o,l$ onl4 resi$e at one pla&e at a ti)e7, 'e &o,l$ not 'ave inten$e$ to la4 $o5n in/lexi*le prin&iples o/ ,niversal appli&ation6 In$ee$, t'is is apparent /ro) t'e rest o/ 'is reasonin16 In revie5in1 t'e $e&isions o/ "n1lis' #o,rts (at <<; :) 'e a&&epte$, *4 i)pli&ation, t'e propositions t'at, in re1ar$ to /orei1n &o)panies, 7a &orporation )i1't *e $ee)e$ to 'ave t5o resi$en&es7, an$ t'at a I &orporation is *4 a /i&tion s,ppose$ to 'ave an "n1lis' resi$en&e or $o)i&ile7@ an$ 'e sai$ t'at 7t'e #o,rts $evise$ an "n1lis' resi$en&e /or t'e &o)pan4 ot'er t'an its real one76 Tr,e, 'e pointe$ o,t t'at t'e "n1lis' #o,rts $i$ not appl4 t'is approa&' to $o)esti& &o)panies, an$ 'e $e&line$, /or reasons o/ &onvenien&e, to appl4 it to t'e /a&ts o/ t'e J &ase 5it' 5'i&' 'e 5as $ealin1, sa4in1 (at <<8)?
1991 (1) SA p498
HO"=T"> JA
A
7An$ t'ere see)s no reason 5'4 5e s'o,l$ in &onne&tion 5it' pro&ee$in1s /o,n$e$ on a &ontra&t entere$ into 5it' t'e 'ea$ o//i&e $evise a /i&tional resi$en&e /or t'e $e/en$ant &o)pan4 at Jo'annes*,r167
B,t, on t'e ot'er 'an$, t'e learne$ J,$1e expressl4 re/raine$ /ro) 'ol$in1 t'at a $o)esti& &o)pan4 &o,l$ not 'ave a resi$en&e, /or 2,ris$i&tional p,rposes, at a pla&e ot'er t'an t'at o/ its &entral B &ontrol6 In allis v 'ordon Dia(ond #inin" Co Ltd (supra ), an$ in t'e A)eri&an &ase o/ 8ldri$! v 8n$hor Coal Co 41 A) State >eports 8<1 (t'e relevant passa1e o/ 5'i&' is 9,ote$ in 8ppleby<s &ase supra at 911), it 5as 'el$ t'at a /orei1n &o)pan4 &arr4in1 on *,siness in t'e area o/ 2,ris$i&tion o/ a lo&al &o,rt is resi$ent, /or 2,ris$i&tional p,rposes, in t'at area in relation to &a,ses o/ a&tion arisin1 o,t o/ its *,siness # a&tivities t'ere6 3it' re/eren&e to t'ose &ases Innes J sai$ at <<8 - 9, in $ealin1 5it' t'e position o/ a $o)esti& &o)pan4?
73it' re1ar$ to t'e &ontra&ts o/ lo&al *ran&'es, t'e *alan&e o/ &onvenien&e 5o,l$ pro*a*l4 *e in /avo,r o/ t'eir *ein1 en/or&e$ *4 lo&al tri*,nals &o)petent to a$2,$i&ate ,pon t'e s,*2e&t )atter6 B,t 5'et'er it 5o,l$ *e /o,n$ possi*le in s,&' &ases to appl4 to $o)esti& &o)panies D t'e prin&iples re&o1nise$ in re1ar$ to /orei1n &orporations in allis v 'ordon Dia(ond Co, an$ also lai$ $o5n *4 an A)eri&an #o,rt in 8ldri$! v 8n$hor Coal Co (41 A) State >ep at 8<1), is a point 5'i&' $oes not arise in t'ese pro&ee$in1s6 T'e 9,estion is one o/ pra&ti&e, an$ s'o,l$ re)ain open ,ntil it &o)es ,p $ire&tl4 /or $e&ision67
T'e 9,estion le/t open pertaine$ to a pla&e 5'ere t'e &o)pan4 &arrie$ " on *,siness, *,t, o/ &o,rse, a si)ilar 9,estion in relation to t'e pla&e 5'ere a &o)pan47s re1istere$ o//i&e is sit,ate$ $i$ not arise an$ 5as not a$verte$ to at all6 In )4 2,$1)ent, t'ere/ore, Be$!ett<s &ase $i$ not la4 $o5n an4 prin&iple 5'i&' 5o,l$ *e in/rin1e$ *4 'ol$in1 t'at a So,t' A/ri&an $o)esti& &o)pan4 resi$es, /or 2,ris$i&tional p,rposes, 8 also at t'e pla&e o/ its re1istere$ o//i&e, i/ t'at is lo&ate$ else5'ere t'an at its pla&e o/ &entral &ontrol6 It 5ill *e re&alle$ t'at in 'ri(shaw<s &ase t'e #o,rt 5as &on&erne$ 5it' a stat,tor4 provision 5'i&' re9,ire$ a /orei1n &o)pan4 to lo$1e 5it' t'e >e1istrar o/ #o)panies t'e na)es an$ a$$resses o/ one or )ore persons resi$ent in t'e #olon4, a,t'orise$ to a&&ept on *e'al/ o/ t'e % &o)pan4 servi&e o/ pro&ess an$ an4 noti&es re9,ire$ to *e serve$ on t'e &o)pan46 In )4 opinion t'e )ere re1istration in t'e #o)panies O//i&e o/ s,&' na)es an$ a$$resses ,n$er t'at se&tion &annot properl4 *e re1ar$e$ as e9,ivalent to t'e position o/ a &o)pan47s re1istere$ o//i&e in ter)s o/ s 1:((1)(b) o/ t'e #o)panies A&t6 3'ile Bristo5e J at 4.: re/erre$ to H an a$$ress ,n$er s 198(1)($) o/ t'e 19(9 A&t as t'e 7re1istere$ o//i&e7 o/ t'e &o)pan4, t'at 5as, 5it' respe&t, reall4 a )isno)er@ an$ t'at t'e learne$ J,$1e )eant to ,se t'e p'rase in a li)ite$ sense see)s to *e &lear /ro) 'is state)ent at 4.; t'at t'e 7re1istere$ o//i&e7 5as t'e pla&e 5'ere t'e &o)pan4 'a$ 7&'osen its do(i$iliu( $itandi et e,e$utandi 76 T'e re1istere$ o//i&e provi$e$ /or in s 1:9(1)(b) o/ t'e I present A&t 'as, in )4 vie5, /ar 1reater si1ni/i&an&e t'an t'e re1istere$ a$$ress 5it' 5'i&' 'ri(shaw<s &ase 5as &on&erne$6 #onse9,entl4 I $o not &onsi$er t'at &ase to *e o/ an4 real )o)ent in t'e &ontext o/ t'e present $is&,ssion6 I 5o,l$ a$$ t'e /ollo5in1 o*servations6 T'e /a&t t'at so)e &o)panies in pra&ti&e pre/er to ,se t'eir re1istere$ o//i&es as no )ore t'an a +in$ o/ postal $epot, rea&'e$ J /ro) t'e pla&e 5'ere *,siness is a&t,all4 &on$,&te$, &annot $etra&t /ro)
1991 (1) SA p499
HO"=T"> JA
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A t'e i)portan&e 5'i&' t'e re1istere$ o//i&e is a&&or$e$ *4 virt,e o/ t'e provisions o/ t'e A&t 5'i&' are )entione$ *4 "lo// J in t'e Dairy Board &ase supra at ::1B - D6 An$ 5'en one is $ealin1 5it' an arti/i&ial person, one ),st per/or&e 5or+ 5it' /i&tions6 On t'at s&ore, I $o not &onsi$er it to *e an4 less a&&epta*le to re1ar$ a &o)pan47s resi$en&e as *ein1 sit,ate$ at its re1istere$ o//i&e, as &o)pare$ to its pla&e o/ B &entral &ontrol, or a $i//erent pla&e 5'ere it &arries on *,siness@ nor, 5it' respe&t, $o I t'in+ t'at it is an4 t'e less arti/i&ial to re1ar$ t'e &o)pan4 as *ein1 7present7 at its re1istere$ o//i&e rat'er t'an *ein1 7resi$ent7 t'ere6
In )4 2,$1)ent, t'ere/ore, /or t'e reasons 1iven, t'e &on&l,sion at 5'i&' "lo// J arrive$ in t'e Dairy Board &ase supra 5as not &ontrar4 to prin&iple or a,t'orit46 In )4 respe&t/,l vie5 'is &on&l,sion 5as # 2,risti&all4 so,n$, an$ it )erits en$orse)ent *4 t'is #o,rt6 It appears to )e, )oreover, t'at in rea&'in1 'is $e&ision in t'e Dairy Board &ase "lo// J properl4 'a$ re1ar$ to &onsi$erations o/ &onvenien&e6 T'e si1ni/i&an&e o/ t'e /a&tor o/ &onvenien&e 5as stresse$ *4 Trollip JA in -state 8"ents Board v Le! (supra )6 At 1(;:" - 8 o/ 'is 2,$1)ent t'e D learne$ J,$1e o/ Appeal o*serve$?
7In t'e present &ontext o/ o,r ,nitar4 2,$i&ial s4ste) o/ 'avin1 one S,pre)e #o,rt 5it' $i//erent Divisions666 &onvenien&e an$ &o))on sense, are, inter alia, vali$ &onsi$erations in $eter)inin1 5'et'er a parti&,lar Division 'as 2,ris$i&tion to 'ear an$ $eter)ine t'e parti&,lar &a,se6 See t'e %onia &ase 19.8 (1) SA ... (A) at .;2A an$ 8, " .;4A@ an$ &/ 8ppleby (Pty) Ltd v Dundas Ltd1948 (2) SA 9(. (") at 91167
T'at /in$in1, *4 itsel/, $oes not &on&l,$e t'e appeal in /avo,r o/ t'e appellant6 T'e in9,ir4 is a $,al one? (1) is t'ere a re&o1nise$ 1ro,n$ o/ 2,ris$i&tion@ an$, i/ t'ere is, (2) is t'e $o&trine o/ e//e&tiveness satis/ie$ - 'as t'e #o,rt po5er to 1ive e//e&t to t'e 2,$1)ent so,1'tH 8 See )u"o v essels198: (<) SA 8<: (A) at 849H - 8.(A6 In t'is &ase t'e se&on$ 9,estion is &learl4 to *e ans5ere$ in t'e a//ir)ative6 T'at t'e respon$ent &arries on *,siness in t'e >ep,*li& o/ Trans+ei an$ t'at all its assets )a4 *e /o,n$ t'ere is irrelevant6 In ter)s o/ s <44 o/ t'e #o)panies A&t a &o)pan4 )a4 *e 5o,n$ ,p *4 % 7t'e #o,rt7 i/ it is ,na*le to pa4 its $e*ts6 An$, in ter)s o/ s 12 7t'e #o,rt7 is an4 0rovin&ial or o&al Division o/ t'e S,pre)e #o,rt 5it'in t'e area o/ t'e 2,ris$i&tion 5'ereo/ t'e re1istere$ o//i&e o/ t'e &o)pan4 or its )ain pla&e o/ *,siness is sit,ate6 In ter)s o/ s <4. a &o)pan4 is $ee)e$ to *e ,na*le to pa4 its $e*ts i/, inter alia, a &re$itor to 5'o) t'e &o)pan4 is in$e*te$ in a s,) o/ not less t'an >1(( H 'as serve$ on t'e &o)pan4 at its re1istere$ o//i&e a $e)an$ /or pa4)ent t'ereo/, an$ t'e &o)pan4 'as /or t'ree 5ee+s t'erea/ter ne1le&te$ to )a+e pa4)ent t'ereo/ or to /,rnis' reasona*le se&,rit4 t'ere/or6 T'e a)o,nts &lai)e$ *4 t'e appellant in its a&tion total t'o,san$s o/ ran$s6 Apart /ro) t'e /a&t t'at (as I 'ave /o,n$) t'e #o,rt a ;uo 5as &o)petent to entertain t'e appellant7s a&tion, it is &lear t'at t'e #o,rt a ;uo I also has Burisdi$tion in any appli$ation a"ainst the respondent in whi$h an order +or its windin" up (ay be sou"htG *pon the "rant o+ a windin" up order a $on$ursus $reditoru( is instit,te$, t'e e//e&t 5'ereo/ is t'at, to ,se t'e lan1,a1e o/ Innes JA in al!er v %y+ret 79 1911 AD 141 at 1;;?
J
7666 (T)'e 'an$ o/ t'e la5 is lai$ ,pon t'e estate66667 1991 (1) SA p366
HO"=T"> JA
A 3in$in1 ,p t'ere/ore represents a potent )eans o/ en/or&e)ent o/ t'e 2,$1)ent so,1't *4 t'e appellant a1ainst t'e respon$ent6 T'e or$er so,1't *4 t'e appellant is t',s easil4 )a$e e//e&t,al 5it'in t'e area o/ 2,ris$i&tion o/ t'e #o,rt a ;uo6
It /ollo5s, in )4 vie5, t'at t'e #o,rt a ;uo s'o,l$ 'ave $is)isse$ t'e B spe&ial plea a1ainst its 2,ris$i&tion to 'ear t'e appellant7s a&tion@ an$ t'at t'e appeal ),st s,&&ee$6 Ho5ever, alt'o,1' it 5as not an iss,e p,rs,e$ at an4 len1t' in ar1,)ent *e/ore ,s, I &onsi$er /,rt'er t'at, apart /ro) t'e /a&t t'at t'e respon$ent 5as resi$ent 5it'in t'e area o/ its 2,ris$i&tion, t'e &o)peten&e o/ t'e #o,rt *elo5 to entertain t'e appellant7s a&tion is # /o,n$e$ no less se&,rel4 on t'e existen&e o/ 2,ris$i&tion ratione do(i$ilii6 In t'e reporte$ &ases pra&ti&al ill,strations o/ $o)i&ile a*o,n$, *,t as 4et no &o)pre'ensive an$ satis/a&tor4 $e/inition appears to 'ave *een /or),late$6 See e1 >an&'o$ 7T'e #on&ept o/ Do)i&ile in SA a57 8$ta Juridi$a (19:() at .< - .@ =orsyth (op $it at 1(1 - <)6 In 'is )ono1rap' D T'e SA a5 o/ Do)i&ile o/ !at,ral 0ersons 0ro/ Ka'n (at .) 9,otes t'e state)ent *4 > A e/lar 8(eri$an Con+li$ts Law (19;8) at 1:, t'at $o)i&ile is
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7666 a le1al relation *et5een a person an$ a pla&e &reate$ *4 la5 an$ not *4 t'e person, an$ $esi1ne$ alto1et'er to serve t'e la57s p,rposes76
"
#artin
ol++ (op $it at 1(;) states?
7A person7s $o)i&ile is t'e pla&e or &o,ntr4 5'i&' is &onsi$ere$ *4 la5 to *e t'e &entre o/ 'is li/e, 'is G&entre o/ 1ravit4G, as it 5ere6 T'is notion is &o))on to all le1al s4ste)s@ *,t t'e4 'ave ver4 $i//erent 5a4s o/ $eter)inin1 t'e pla&e to *e loo+e$ on as s,&' &entre67
8 3'at appears to 'ave *een t'e position at &o))on la5 in "n1lan$ )a4 *e 1at'ere$ /ro) 'as;ue v Co((issioners o+ Inland Revenue A194(B 2 KB 8( (an appeal a1ainst assess)ents to s,rtax) 5'i&' $e&i$e$ t'at t'e $o)i&ile o/ a li)ite$ &o)pan4 5as $eter)ine$ *4 its pla&e o/ re1istration@ an$ t'at s,&' $o)i&ile &lin1s to it t'ro,1'o,t its existen&e6 In t'e &o,rse o/ 'is 2,$1)ent Ma&!a1'ten J re)ar+e$ at 84 - .? %
7It 5as s,11este$ *4 Mr 7eedha( on *e'al/ o/ t'e appellant t'at *4 t'e la5 o/ "n1lan$ a *o$4 &orporate 'as no $o)i&il6 It is 9,ite tr,e t'at a *o$4 &orporate &annot 'ave a $o)i&il in t'e sa)e sense as an in$ivi$,al an4 )ore t'an it &an 'ave a resi$en&e in t'e sa)e sense as an in$ivi$,al6 B,t *4 analo14 5it' a nat,ral person t'e attri*,tes o/ resi$en&e, $o)i&il an$ nationalit4 &an *e 1iven, an$ are, I t'in+, 1iven H *4 t'e la5 o/ "n1lan$ to a *o$4 &orporate6666 T'e $o)i&il o/ ori1in, or t'e $o)i&il o/ *irt', ,sin1 5it' respe&t to a &o)pan4 a /a)iliar )etap'or, &lin1s to it t'ro,1'o,t its existen&e6666
T'e Soli&itor-%eneral &alle$ )4 attention to t'e &ase in t'e A)eri&an #o,rts o/ Ber"ner & -n"el Brewin" Co(pany v Drey+us (1898 :( A) State >ep 2.1)6 T'e 2,$1)ent in t'at &ase 5as $elivere$ *4 Hol)es J6 An4 opinion o/ t'at ver4 e)inent J,$1e, )ore parti&,larl4 on an4 9,estion I relatin1 to t'e &o))on la5 o/ "n1lan$, is entitle$ to t'e 'i1'est respe&t in an4 "n1lis' #o,rt6 T'e 'ea$note to t'at &ase, 5'i&' &orre&tl4 represents t'e $e&ision, is t'is? GA &orporation 'as its $o)i&il in t'e 2,ris$i&tion o/ t'e state 5'i&' &reate$ it, an$, as a &onse9,en&e, 'as no $o)i&il an45'ere else6G 7 In "n1lan$ t'e #ivil J,ris$i&tion an$ J,$1)ents A&t 1982 /or 2,ris$i&tional p,rposes attri*,tes a $o)i&ile to &orporations *4 J assi)ilatin1
1991 (1) SA p361
HO"=T"> JA $o)i&ile to t'e &orporation7s 7seat7@ an$ *4 pres&ri*in1 r,les 5'i&' rel4 on a &o)*ination o/ t'e pla&e o/ in&orporation, t'e pla&e o/ t'e re1istere$ o//i&e, an$ t'e pla&e o/ resi$en&e as &riteria /or $eter)inin1 t'e seat6 See Di&e4 an$ Morris The Con+li$t o+ Laws 11t' e$ (198:) at 11<( - 1@ Morris an$ !ort' Cases and #aterials on Private International Law (1984) at :9 et se;6 B4 5a4 o/ ill,stration t'e B provisions o/ ss (<) an$ (4) o/ s 42 o/ t'e A&t )a4 'ere *e 9,ote$?
A
7(<) A &orporation or asso&iation 'as its seat in t'e Dnite$ Kin1$o) i/ an$ onl4 i/ (a) it 5as in&orporate$ or /or)e$ ,n$er t'e la5 o/ a part o/ t'e Dnite$ Kin1$o) an$ 'as its re1istere$ o//i&e or so)e ot'er o//i&ial # a$$ress in t'e Dnite$ Kin1$o)@ or (b) its &entral )ana1e)ent an$ &ontrol is exer&ise$ in t'e Dnite$ Kin1$o)6 (4) A &orporation or asso&iation 'as its seat in a parti&,lar part o/ t'e Dnite$ Kin1$o) i/ an$ onl4 i/ it 'as its seat in t'e Dnite$ Kin1$o) an$ (a) it 'as its re1istere$ o//i&e or so)e ot'er o//i&ial a$$ress in t'at part@ or (b) its &entral )ana1e)ent an$ &ontrol is exer&ise$ in t'at part@ or
D
($) it 'as a pla&e o/ *,siness in t'at part67
3'ile re/eren&e to &o)parative le1al s4ste)s is ,se/,l an$ instr,&tive it nee$ 'ar$l4 *e sai$ t'at $o)i&ile is an iss,e to *e $eter)ine$ *4 t'e le, +ori6 T'is r,le applies not onl4 in t'e &on/li&t o/ la5s to t'e sele&tion sta1e 5'ere t'e le, do(i$ilii )a4 'ave to *e $eter)ine$, *,t o*vio,sl4 also in t'e $eter)ination o/ t'e iss,e 5'et'er an4 parti&,lar " Division o/ t'e S,pre)e #o,rt 'as t'e &o)peten&e to 'ear an a&tion ratione do(i$ilii6 See -llison Kahn (op $it at 11)6 T'e position is neatl4 p,t *4 =orsyth (op $it at 1(8)?
7666 (I)/ $o)i&ile is *ein1 ,se$ as a 2,ris$i&tional lin+ rat'er t'an as a &onne&tin1 /a&tor in a &'oi&e o/ la5 r,le666 t'e lo&al 8 &o,rt is interpretin1 a r,le /,n$a)ental to its o5n po5er to $eter)ine t'e $isp,te66667
See /,rt'er -, parte Jones@ In re Jones v Jones1984 (4) SA :2. (3) at :2:" - 86 T'e tests /or $eter)inin1 $o)i&ile are )ore ela*orate an$ el,sive t'an t'ose /or )ere resi$en&e6 Sin&e t'e as&ription o/ eit'er resi$en&e or % $o)i&ile to a &o)pan4 $erives /ro) t'e
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e9,iparation o/ a nat,ral person an$ a 2,risti& entit4 *ot' notions - as pointe$ o,t *4 Ma&!a1'ten J in 'as;ue v CIR (supra ) - are e9,all4 i)palpa*le6 Ho5ever transparent t'e /i&tion involve$ )a4 *e, its ,se is $i&tate$ *4 le1al ne&essit4@ an$ t'e &on&ept o/ $o)i&ile, no less t'an t'at o/ resi$en&e, ),st *e applie$ to H a &o)pan4 as *est one &an6 T'e &on&ept o/ $o)i&ile en&o)passes *ot' a p'4si&al an$ a )ental ele)ent6 T'e p'4si&al ele)ent is resi$en&e at a parti&,lar pla&e or 5it'in a parti&,lar re$hts!rin"6 T'e 9,estion o/ &riti&al i)portan&e on t'is part o/ t'e present &ase is to $eter)ine t'e territorial a)*it o/ t'e re$hts!rin" 5it'in 5'i&' t'e respon$ent is $o)i&ile$6 Dealin1 5it' I t'e $o)i&ile o/ &orporations =orsyth (op $it at 1;:) states?
7A &orporation is notionall4 $o)i&ile$ at is pla&e o/ in&orporation6 A &orporation )a4, o/ &o,rse, *e $o)i&ile$ onl4 in t'e >ep,*li& as a 5'ole an$ t'is is not s,//i&ient /or it to *e $o)i&ile$ in t'e area o/ an4 parti&,lar Division o/ t'e S,pre)e #o,rt6 Hen&e, /or t'e p,rpose o/ esta*lis'in1 2,ris$i&tion in a Division, $o)i&ile alone 5ill never J s,//i&e67 1991 (1) SA p362
HO"=T"> JA
A T'at in t'e &on/li&t o/ la5s a &o)pan4 in&orporate$ in So,t' A/ri&a 5it' its re1istere$ o//i&e so)e5'ere 5it'in t'e >ep,*li& 5ill 'ave a So,t' A/ri&an $o)i&ile is )ani/est6 B,t it see)s to )e, 5it' respe&t, to *e /ar /ro) o*vio,s t'at in t'e sit,ation 5'ere $o)i&ile is *ein1 invo+e$ as a &onne&tin1 /a&tor to esta*lis' 2,ris$i&tion s,&' a &o)pan4 &annot 'ave a $o)i&ile territoriall4 narro5er an$ )ore &ir&,)s&ri*e$ t'an a B national $o)i&ile6 3'atever )a4 *e t'e position in ot'er le1al s4ste)s, I see no 1ro,n$, in t'e li1't o/ t'e pe&,liar 2,$i&ial str,&t,re o/ So,t' A/ri&a, /or ex&l,$in1 5'at )a4 &onvenientl4 *e $es&ri*e$ as 7provin&ial7 $o)i&ile6
It 'as *een pointe$ o,t t'at $espite t'e &reation o/ a sin1le S,pre)e #o,rt it la&+s a,t'orit4 over t'e 5'ole &o,ntr4@ an$ t'at onl4 Divisions # t'ereo/ 'ave 2,ris$i&tion to entertain a&tions6 8or t'e p,rposes o/ 2,ris$i&tion t'e area in respe&t 5'ereo/ a $e/en$ant is an in$ola or a pere"rinus is t'e area o/ t'e Division to 5'i&' t'e #o,rt in 5'i&' t'e a&tion is instit,te$ *elon1s6 To t'at extent o,r 2,$i&ial str,&t,re 'as a /e$eral aspe&t6 T'e &o)pli&ation &onse9,ent t'ere,pon is $es&ri*e$ t',s in an arti&le on 7Do)i&ile7 *4 0olla+ in (19<<) .( %8LJ 449 at 4.;?
D
7In t'e li1't o/ t'ese &ir&,)stan&es, &an it *e sai$ t'at t'ere is s,&' a t'in1 as a Dnion $o)i&ile, or &an one spea+ onl4 o/ a provin&ial $o)i&ileH It is s,*)itte$ t'at no 'ar$ an$ /ast ans5er &an *e 1iven to t'is 9,estion6 T'e ans5er 5ill $epen$ ,pon t'e nat,re o/ t'e in9,ir4 in re1ar$ to 5'i&' t'e 9,estion o/ $o)i&ile is raise$6 I/ t'e in9,ir4 relates to t'e 2,ris$i&tion o/ a 0rovin&ial Division $o)i&ile in t'at provin&e is ne&essar4, an$ t'is re9,ire)ent is not )et *4 s'o5in1 a " per)anent 'o)e in anot'er provin&e or a per)anent 'o)e in t'e Dnion as a 5'ole67
Dealin1 5it' )one4 &lai)s a1ainst &orporations in 'is treatise on Jurisdi$tion, 0olla+ expresses $isapproval o/ eit'er resi$en&e or $o)i&ile as &onne&tin1 /a&tors to /o,n$ 2,ris$i&tion@ an$ 'e is )in$e$ to $is&ar$ *ot' &on&epts6 T'ere t'e learne$ a,t'or 5rites (at 92)?
8
7It is propose$ t'ere/ore to state t'e la5 5it' re1ar$ to a&tions a1ainst &orporations 5it'o,t )a+in1 ,se o/ t'e notions o/ $o)i&ile an$ resi$en&e67
I respe&t/,ll4 *,t /ir)l4 $isa1ree 5it' t'e a*ove approa&' to t'e pro*le)6 I $o not &onsi$er t'at it a&&,ratel4 re/le&ts t'e &,rrent le1al position in So,t' A/ri&a6
% Despite 'is $isin&lination in prin&iple to invo+e t'e $o)i&ile o/ a &orporation as a 2,ris$i&tional &onne&tin1 /a&tor, it )a4 *e note$ t'at Polla! nevert'eless re&o1nises an$ a&&epts t'e existen&e o/ a 7provin&ial7 $o)i&ile in t'e &ase o/ a So,t' A/ri&an &o)pan46 T'is appears /ro) t'e se&on$ part o/ 'is arti&le on $o)i&ile (see (19<4) .1 H SA J at <;)6 Havin1 expresse$ s&epti&is) as to 5'et'er t'e attri*,tion o/ a /i&titio,s $o)i&ile to a &orporation serves an4 real ,se/,l p,rpose, Polla! points o,t, 'o5ever, t'at in /a&t So,t' A/ri&an #o,rts 'ave ,se$ t'e notion@ an$ 'e pro&ee$s to $is&,ss 75'at is to *e &onsi$ere$ to *e t'e $o)i&ile o/ a &orporation76 To t'is en$ t'e learne$ a,t'or /or),lates a n,)*er o/ r,les, t'e /irst o/ 5'i&' is state$ in t'e /ollo5in1 ter)s? I
7(1) In t'e &ase o/ a tra$in1 &o)pan4 in&orporate$ an$ re1istere$ in t'e Dnion an$ 'avin1 is prin&ipal pla&e o/ *,siness in t'e Dnion, t'e $o)i&ile o/ t'e &o)pan4 is t'e Provin$e in 5'i&' its prin&ipal pla&e o/ *,siness is sit,ate67
(")p'asis provi$e$6)
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It 'as alrea$4 *een pointe$ o,t t'at t'e &on&ept o/ $o)i&ile len$s rat'er t'an to pre&ise $e/inition6 O/ t'e )an4
itsel/ to exe)pli/i&ation
1991 (1) SA p362
!I#HO AS AJA $e/initions t'at 'ave *een atte)pte$, 'o5ever, it see)s to )e t'at /or p,rposes o/ t'e present appeal (an$ I 'asten to a$$, /or t'ose p,rposes onl4) a terse *,t ,se/,l state)ent is to *e /o,n$ in t'e 2,$1)ent $elivere$ al)ost a &ent,r4 a1o in t'e &ase o/ In re Crai"nish@ Crai"nish v )ewitt A1892B < #' 18(6 T'ere #'itt4 J applie$ (at 192) t'e /ollo5in1 $e/inition in Stor47s Con+li$t o+ Laws (1), na)el4 B
A
7t'at pla&e is properl4 t'e $o)i&il o/ a person in 5'i&' 'is 'a*itation is /ixe$ 5it'o,t an4 present intention o/ re)ovin1 t'ere/ro)76
"arlier in t'is 2,$1)ent it 'as *een 'el$ t'at *4 reason o/ t'e sit,ation o/ its re1istere$ o//i&e in Jo'annes*,r1 t'e respon$ent 'as its 'a*itation (7resi$en&e7) 5it'in t'e re$hts!rin" o/ t'e 3it5atersran$ o&al Division6 On t'e parti&,lar /a&ts o/ t'e instant &ase I /,rt'er # /in$ t'at as lon1 as t'e respon$ent retains t'at sit,ation o/ its re1istere$ o//i&e, t'ere s,*sists *et5een t'e respon$ent an$ t'e area o/ 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division a relation, &reate$ *4 la5, 5'i&' ren$ers t'e respon$ent $o)i&ile$, /or t'e p,rposes o/ /o,n$in1 2,ris$i&tion, 5it'in t'at area6 I a) &are/,l to &on/ine t'e a*ove /in$in1 in re1ar$ to t'e D respon$ent7s $o)i&ile to t'e pe&,liar /a&ts o/ t'e &ase, /or t'e /ollo5in1 reasons6 I/ one a&&epts, as I $o, t'at a &o)pan4 5'i&' 'as its pla&e o/ &entral &ontrol else5'ere t'an at its re1istere$ o//i&e resi$es si),ltaneo,sl4 at *ot' pla&es, t'en t'e 9,estion o/ t'e respon$ent7s $o)i&ile )i1't 5ell 'ave ass,)e$ a $i//erent &o)plexion 'a$ t'e respon$ent &arrie$ on its *,siness not in t'e Trans+ei *,t 5it'in t'e " >ep,*li& an$ *e4on$ t'e area o/ 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division - sa4, /or instan&e, at 0retoria6 3'ile I 'ave no $i//i&,lt4 in a&&eptin1 t'at /or 2,ris$i&tional p,rposes a &o)pan4 )a4 'ave $,al resi$en&e, it is not eas4 to &on&eive, /or 2,ris$i&tional p,rposes, o/ t'e as&ription o/ )ore t'an a sin1le $o)i&ile to a &o)pan46 A&&or$in1l4 8 I 5o,l$ li)it t'e sele&tion o/ $o)i&ile as an alternative 1ro,n$ o/ 2,ris$i&tion /or t'e 3it5atersran$ o&al Division in t'is &ase to t'e parti&,lar &ir&,)stan&e t'at t'e respon$ent 'as no pla&e o/ *,siness or &entral &ontrol an45'ere 5it'in t'e >ep,*li&6 In t'e '4pot'eti&al exa)ple )entione$ a*ove it )i1't *e a )atter o/ &onsi$era*le $i//i&,lt4 to $e&i$e 5'et'er t'e &o)pan4 5as $o)i&ile$ % 5it'in t'e area o/ 2,ris$i&tion o/ t'e 3it5atersran$ o&al Division or t'at o/ t'e Transvaal 0rovin&ial Division6 Sin&e t'e 9,estion nee$ not *e investi1ate$ /or p,rposes o/ t'e present appeal, I 5o,l$ pre/er to leave it open6 T'e appeal s,&&ee$s 5it' &osts, in&l,$in1 t'e &osts o/ t5o &o,nsel6 H T'e or$er o/ a*sol,tion /ro) t'e instan&e 5it' &osts )a$e *4 t'e #o,rt a ;uo is set asi$e, an$ t'e /ollo5in1 or$er is s,*stit,te$ t'ere/or?
7T'e /irst $e/en$ant7s spe&ial plea raisin1 an o*2e&tion to t'e 2,ris$i&tion o/ t'e #o,rt is $is)isse$ 5it' &osts67
Bot'a JA an$ %ol$stone AJA &on&,rre$ in t'e 2,$1)ent o/ Hoexter JA6 &$'(*)#
!i&'olas AJA? I a) in respe&t/,l a1ree)ent 5it' t'e 5'ole o/ t'e 2,$1)ent o/ Hoexter JA, save in its en$orse)ent o/ t'e 2,$1)ent in Dairy Board v John T Rennie & Co (Pty) Ltd19:; (<) SA :;8 (3) an$ t'e $e&ision t'at a &o)pan4 re1istere$ in t'e >ep,*li& o/ So,t' A/ri&a J resi$es 5'ere its re1istere$ o//i&e is sit,ate$6
1991 (1) SA p364
!I#HO AS AJA
A T'e 5or$ 7resi$en&e7 'as a variet4 o/ )eanin1s, ran1in1 /ro) )ere p'4si&al presen&e to $o)i&ile6 (See Polla! (op $it at 44)6) T'e learne$ a,t'or $is&,sses t'e pro*le) o/ 5'at is )eant *4 7resi$en&e7 in relation to 2,ris$i&tion at 4. - 8, 5'ere 'e 9,otes /ro) t'e 2,$1)ent o/ Bristo5e J in Robinson v Co((issioner o+ Ta,es 191: T0D .42 at .4: - 86 In B /ootnote 1 at 4; - : 'e 9,otes a n,)*er o/ ot'er 2,$i&ial atte)pts to $es&ri*e 5'at is )eant *4 resi$en&e in relation to a nat,ral person6
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T'ere is nor)all4 no $i//i&,lt4 in $e&i$in1 5'ere a nat,ral person resi$es, *,t 5'en t'e in9,ir4 relates to a &o)pan4 so)e arti/i&ial test ),st *e applie$6 8or a &o)pan4 is a &reation o/ t'e la5, an$ exists onl4 in abstra$to6
#
7T'e arti/i&ial le1al person &alle$ t'e &orporation 'as no p'4si&al existen&e6 It exists onl4 in &onte)plation o/ la56 It 'as neit'er *o$4, parts, nor passions6 It &annot *ear 5eapons nor serve in t'e 5ars6 It &an *e neit'er lo4al nor $islo4al6 It &annot &o)pass treason6 It &an *e neit'er /rien$ nor ene)46 Apart /ro) its &orporators it &an 'ave neit'er t'o,1'ts, 5is'es, nor intentions, /or it 'as no )in$ ot'er t'an t'e )in$s o/ t'e &orporators67
(Per B,&+le4 J in Continental Tyre and Rubber Co ('reat Britain) Ltd v Dai(ler Co Ltd A191.B 112 T> <24 at <<<6) In -state Koot$her v Co((issioner +or Inland Revenue 1941 AD 2.;, t'e $isp,te$ 9,estion 5as 5'et'er t'e Stan$ar$ Ban+ o/ So,t' A/ri&a t$ 5as in la5 to *e re1ar$e$ as 7resi$ent7 5it'in t'e Dnion6 3ater)e4er JA sai$ " at 2;(?
7!o5 it 'as *een /re9,entl4 pointe$ o,t t'at 5'en t'e 5or$s Gresi$eG or Gresi$entG are ,se$ in &onne&tion 5it' a &orporation to in$i&ate its presen&e in a pla&e /or so)e perio$ o/ its &orporate existen&e, t'e 5or$s are ,se$ in a /i1,rative sense an$ &an onl4 *e 1iven a )eanin1 analo1o,s to t'e )eanin1 o/ t'e 5or$s ,se$ 5it' re1ar$ to a ',)an *ein16 8 A ',)an *ein1 'as a *o$4 an$ a )in$ an$ t'e )in$ al5a4s a&&o)panies t'e *o$4@ t'e )in$ t'ere/ore resi$es (i/ a )in$ &an *e sai$ to resi$e) 5'ere t'e *o$4 resi$es6 A &orporation 'as no *o$4 *,t it 'as 5'at *4 analo14 &an *e &alle$ a $ire&tin1 )in$6 In a ',)an *ein1 t'e lo&ation o/ t'e *o$4 5it' its atten$ant )in$, i/ s,&' lo&ation *e perio$i& or ,s,al or 'a*it,al, $eter)ines t'e resi$en&e o/ t'at ',)an *ein1, an$ it is t'ere/ore to *e expe&te$ t'at t'e resi$en&e o/ a &orporation 5ill *e % $eter)ine$ *4 t'e perio$i&, ,s,al or 'a*it,al lo&ation o/ t'e $ire&tin1 )in$6 In t'e &ase o/ De Beers Consolidated #ines v )owe 19(; A# 4.. at 4.9, or$ ore*,rn state$ t'e la5 as /ollo5s? GIn appl4in1 t'e &on&eption o/ resi$en&e to a &o)pan4, 5e o,1't, I t'in+, to pro&ee$ as nearl4 as 5e &an ,pon t'e analo14 o/ an in$ivi$,al6 A &o)pan4 &annot eat or sleep, *,t it &an +eep 'o,se an$ $o *,siness6 3e o,1't, t'ere/ore, to see 5'ere it reall4 +eeps 'o,se H an$ $oes *,siness6 An in$ivi$,al )a4 *e o/ /orei1n nationalit4, an$ 4et resi$e in t'e Dnite$ Kin1$o)6 So )a4 a &o)pan46666 A &o)pan4 resi$es /or p,rposes o/ in&o)e tax 5'ere its real *,siness is &arrie$ on666 t'e real *,siness is &arrie$ on 5'ere t'e &entral )ana1e)ent an$ &ontrol a&t,all4 a*i$es6666G
T'is passa1e 'as *een 9,ote$ 5it' approval an$ /ollo5e$ in n,)ero,s &ases o/ t'e 'i1'est a,t'orit467 I i+e De Beers, -state Koot$her 5as a tax &ase, *,t t'e sa)e prin&iple 5as state$ *4 t'e Appellate Division in a &ase relatin1 to 2,ris$i&tion ,n$er s 1; o/ t'e Transvaal A$)inistration o/ J,sti&e 0ro&la)ation6 Innes J sai$ in T Be$!ett & Co Ltd v Kroo(er Ltd 1912 AD <24 at <44?
7!o5 t'e ter)s Gresi$eG an$ Gresi$en&eG &an onl4 *e ,se$ in t'eir tr,e si1ni/i&an&e 5it' re1ar$ to nat,ral persons6 T'e resi$en&e o/ a le1al J persona li+e a 1991 (1) SA p363
!I#HO AS AJA
A
&o)pan4, arti/i&iall4 &reate$, ),st *e a )ere notional &on&eption intro$,&e$ /or p,rposes o/ 2,ris$i&tion an$ la5 (see =oote at 112)6 T'e onl4 'o)e 5'i&' a &orporation &an *e sai$ to 'ave is t'e pla&e 5'ere t'e operations /or 5'i&' it 5as &alle$ into existen&e are &arrie$ on6 So /ar as it &an *e sai$ to resi$e an45'ere, t'at is 5'ere it resi$es6 An$ i/ t'e analo14 o/ a nat,ral person is to *e /ollo5e$, one 5o,l$ sa4 t'at it &o,l$ onl4 resi$e in one pla&e at one ti)e6 T'e $o&trine is /ir)l4 esta*lis'e$ t'at 5'ere a &o)pan4 &arries on *,siness at )ore pla&es t'an B one its tr,e resi$en&e is lo&ate$ 5'ere its 1eneral a$)inistration is &entre$6 To 9,ote t'e 5or$s o/ in$le4 Co(panies ;t' e$ at 122<? GT'e resi$en&e an$ $o)i&ile o/ an in&orporate$ &o)pan4 are $eter)ine$ *4 t'e sit,ation o/ its prin&ipal pla&e o/ *,siness6 T'is is not onl4 t'e opinion o/ t'e )ost re&ent 5riters on private international la5, *,t is s,pporte$ *4 t'e $e&isions o/ o,r o5n #o,rts6 B4 t'e prin&ipal pla&e o/ # *,siness is )eant t'e pla&e 'ere t'e a$)inistrative *,siness o/ t'e &o)pan4 is &on$,&te$@ t'is )a4 not *e 5'ere its )an,/a&t,rin1 or ot'er *,siness operations are &arrie$ on6G 7
Ho5ever, in Dairy Board v John T Rennie & Co (Pty) Ltd (supra ), 5'ere t'e 9,estion 5as 5'et'er t'e 3 D 'a$ 2,ris$i&tion over t'e $e/en$ant &o)pan4, "lo// J 'el$ t'at a &o)pan4 re1istere$ in So,t' A/ri&a resi$e$ D in la5 5'ere its re1istere$ o//i&e is6 T'e $e/en$ant7s re1istere$ o//i&e 5as 5it'in t'e #o,rt7s area o/ 2,ris$i&tion, *,t its *,siness a&tivities 5ere &on$,&te$ /ro) D,r*an, 5'ere its )ana1e)ent 5as sit,ate$, its *oo+s o/ a&&o,nt 5ere +ept, its $ire&tors )et )ost o/ t'e ti)e, an$ its *,siness 5as &ontrolle$6 T'e learne$ J,$1e pose$ t'e 9,estion? 7In t'e " li1't o/ t'e &ir&,)stan&es &an it *e sai$ t'at $e/en$ant resi$es or is in t'e 3it5atersran$ 5it'in t'e )eanin1 o/ s 19H7 His ans5er 5as a//ir)ative?
7In )4 vie5, a &o)pan4 re1istere$ in So,t' A/ri&a resi$es in la5 5'ere t'e re1istere$ o//i&e is6 I/ its prin&ipal pla&e o/ *,siness is sit,ate$ else5'ere it )a4 also resi$e at t'e latter pla&e67
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8 He a&&or$in1l4 'el$ t'at t'e 3 D 'a$ 2,ris$i&tion in t'e )atter6 In )4 respe&t/,l opinion t'is &on&l,sion is &ontrar4 to prin&iple an$ a,t'orit4, an$ &annot *e s,pporte$6
Havin1 re/erre$ to di$ta in T Be$!ett (supra ) "lo// J o*serve$ t'at t'e #o,rt $i$ not t'ere 'ave to &onsi$er 5'et'er a &o)pan4 )i1't not *e sai$ to resi$e or *e 5'ere its re1istere$ o//i&e is, an$ sai$ (at ::(H)? %
73'at is, in )4 opinion, o/ i)portan&e in t'e 2,$1)ent in Be$!ett<s &ase is t'at t'e #o,rt &onsi$ere$ t'at t'ere is a &lose &orrelation *et5een t'e $,t4 o/ a &o)pan4 to a&&ept servi&e at a parti&,lar pla&e an$ its pla&e o/ resi$en&e6 At <<9 t'e &on&l,$in1 para1rap' o/ t'e 2,$1)ent rea$s? G8or t'e p,rpose o/ t'is &ase it is not ne&essar4 to sa4 )ore t'an t'at a &o)pan4 s'o,l$ not *e &o)pelle$ to a&&ept servi&e an45'ere, H save at its &entral o//i&e, o/ pro&ess t'e o*2e&t o/ 5'i&' is to en/or&e or re&over $a)a1es in respe&t o/ a &ontra&t entere$ into 5it' t'e o//i&ials o/ its &entral a$)inistration6G 7
I $o not t'in+ t'at t'is passa1e provi$es s,pport /or "lo// J7s opinion6 3'at Innes J 5as sa4in1 5as t'at a &o)pan4 s'o,l$ *e &o)pelle$ to a&&ept servi&e at its &entral o//i&e an$ at no ot'er pla&e - 'e 5as not sa4in1 I t'at i/ a &o)pan4 5as o*li1e$ to a&&ept servi&e at so)e ot'er pla&e, t'at pla&e 5as to *e &onsi$ere$ as its resi$en&e6 "lo// J 5ent on to sa4 t'at t'is &orrelation *et5een t'e pla&e at 5'i&' servi&e )a4 *e e//e&te$ an$ 2,ris$i&tion over a &orporation 5as
7666 in a&&or$an&e 5it' 5'at 5as sai$ *4 #'es'ire Private J International Law :t' e$ at 1:4, as /ollo5s? 1991 (1) SA p364
!I#HO AS AJA
A
GI/ 'e is /o,n$ 'ere 'e &an *e serve$ 'ere an$ at &o))on la5 t'e exer&ise o/ 2,ris$i&tion $epen$s on servi&e6 It is t'e sa)e in t'e &ase o/ a &orporation6G
%o5er #odern Co(pany Law <r$ e$ at 44: is to si)ilar e//e&t 5'ere 'e sa4s sub vo$e GT'e &o)pan47s 'o)eG? GB4 t'e expression o/ 7'o)e7 5e )ean t'e o//i&e at 5'i&' t'e re1isters 'ave to *e +ept an$ 5'ere servi&e is to *e e//e&te$6G 7 B
Cheshire is not a sa/e 1,i$e on t'is point *e&a,se in o,r la5, $i//erin1 /ro) t'e "n1lis' &o))on la5, t'e exer&ise o/ 2,ris$i&tion $oes not $epen$ on servi&e6 In an4 event, 5'ere t'e 9,estion is 5'et'er a $e/en$ant resi$es 5it'in t'e #o,rt7s 2,ris$i&tion, t'is is not s'o5n *4 t'e /a&t t'at 'e &an *e serve$ t'ere6 !or $oes 'ower provi$e$ t'e learne$ J,$1e 5it' s,pport6 T'e senten&e # 9,ote$ *4 "lo// J is in t'e se&tion o/ t'e *oo+ 'ea$e$ 7Matters re9,irin1 re1istration at t'e #o)panies7 >e1istr476 T'e $e/inition 9,ote$ re/le&ts 5'at 75e7 (ie t'e a,t'ors) )ean *4 7'o)e7 - an expression 5'i&' is not ,se$ in t'e #o)panies A&t6 An$ t'e senten&e is /ollo5e$ i))e$iatel4 *4 t'e state)ent? 7It is not ne&essaril4 its D Gresi$en&eG in t'e te&'ni&al sense66667 "lo// J sai$ at ::1B - D t'at t'e /a&tors o/ t'e pla&es at 5'i&' a &o)pan4 &an *e serve$ 5it' pro&ess
7666 ass,)es i)portan&e i/ it *e *orne in )in$ t'at s 1:((1) o/ t'e #o)panies A&t ;1 o/ 19:<, as also its pre$e&essor in t'e 192; #o)panies " A&t, )entions t'e re1istere$ o//i&e as t'e one Gat 5'i&' all pro&ess )a4 *e serve$G6 An$ not onl4 $oes t'e #o)panies A&t ren$er t'e re1istere$ o//i&e t'e pla&e at 5'i&' servi&e &an *e e//e&te$@ it is also t'e pla&e 5'ere a )in,te *oo+ o/ t'e 1eneral )eetin1s o/ t'e &o)pan4 is to *e +ept (s 2(4)@ as also t'e re1ister o/ allot)ent o/ s'ares (s 9<)@ t'e re1ister o/ )e)*ers (s 1(.)@ a re1ister o/ ple$1es an$ *on$s (s 12:)@ a re1ister o/ $e*ent,re 'ol$ers (s 128)@ a re1ister o/ $ire&tors an$ 8 o//i&ers (s 21;)@ a re1ister o/ )aterial interests o/ $ire&tors an$ ot'er insi$ers in t'e s'ares an$ $e*ent,res o/ t'e &o)pan4 (s 2<( an$ s 2<1)@ a re1ister o/ $e&laration o/ interest in &ontra&ts *4 $ire&tors an$ o//i&ers (s 24()@ a re1ister o/ atten$an&e o/ $ire&tors7 an$ )ana1ers7 )eetin1s (s 24.)@ an$ a re1ister o/ /ixe$ assets (s 284)6 T'e totalit4 o/ t'ese provisions see) to )e to attra&t t'e in/eren&e t'at t'e e1islat,re inten$e$ to en$o5 t'e re1istere$ o//i&e 5it' t'e % 9,alit4 o/ *ein1 t'e pla&e to 5'i&' t'e 5orl$ &an loo+ as t'e le1al 'o)e an$ a$)inistrative &entre o/ t'e &o)pan467
I respe&t/,ll4 $isa1ree 5it' t'is &on&l,sion6 T'e re&or$s re/erre$ to are not t'e lares et penates o/ a &o)pan47s 'o)e6 T'e4 are +ept at t'e &o)pan47s re1istere$ o//i&e onl4 *e&a,se t'e #o)panies A&t re9,ires it, H pres,)a*l4 in or$er t'at t'e4 s'o,l$ *e a&&essi*le at a /ixe$ an$ as&ertaina*le pla&e /or inspe&tion *4 t'ose entitle$ to inspe&t t'e)6 A &o)pan47s re1istere$ o//i&e is /re9,entl4 sit,ate$ at t'e o//i&es o/ an attorne4 or a,$itor, 5'ose &onne&tion 5it' t'e &o)pan4 )a4 *e no )ore t'an pro/essional, an$ 5'o )a4 not ot'er5ise exer&ise 'is )in$ in t'e a$)inistration o/ t'e &o)pan47s a//airs6 T'e presen&e o/ t'e re1istere$ I o//i&e is ,s,all4
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in$i&ate$ *4 a *oar$ a//ixe$ to t'e 5all o,tsi$e t'e re&eption o//i&e, /re9,entl4 a)on1 a n,)*er o/ si)ilar *oar$s /or ot'er &o)panies6 An$ no )ore is re9,ire$ o/ t'e atten$ant e)plo4ee &on&erne$, t'an t'at s'e s'o,l$ a&&ept servi&e o/ pro&ess, an$ re&eive &o)),ni&ations, an$ pro$,&e /or inspe&tion t'e re&or$s a*ove re/erre$ to6 In 'ri(shaw v #i$a #ines Ltd 1912 T0D 4.( Bristo5e J re/erre$ at J 4.; - : to t'e /a&t t'at t'e re1istere$
1991 (1) SA p365
!I#HO AS AJA
A o//i&e is ,s,all4 t'e pla&e 5'ere t'e &o)pan4 is &ontrolle$ an$ 5'ere t'e 1eneral s,perinten$en&e o/ its a//airs ta+es pla&e, *,t a$$e$?
7666 B,t it is not ne&essaril4 so6 T'e re1istere$ o//i&e )a4 *e )erel4 a pla&e 5'ere noti&es an$ s,))onses &an *e serve$ on t'e &o)pan4, a )ere a$$ress /or servi&e, at 5'i&' no *,siness at all is &arrie$ on6 It &annot *e sai$ t'at, *e&a,se t'e &o)pan4 'as a re1istere$ o//i&e B 5'ere not'in1 )ore t'an t'at is $one, it &arries on *,siness t'ere67
An$ see t'e spee&' o/ Cis&o,nt S,)ner in -"yptian Delta Land and Invest(ent Co(pany v Todd 1929 A# at 14 - 1.6 I state$ at t'e o,tset t'at I a1ree$ 5it' Hoexter JA t'at t'e 3it5atersran$ o&al Division is t'e $e/en$ant &o)pan47s +oru( do(i$ilii6 # 8or t'e reasons 1iven *4 )4 learne$ #ollea1,e it is )ani/est t'at it 'as a So,t' A/ri&an $o)i&ile6 3'ere t'e 9,estion relates to t'e 2,ris$i&tion o/ a Division o/ t'e S,pre)e #o,rt, 'o5ever, it is ins,//i&ient t'at a &o)pan4 is $o)i&ile$ in t'e >ep,*li&@ it is ne&essar4 t'at it s'o,l$ 'ave a lo&al $o)i&ile 5it'in t'e area o/ 2,ris$i&tion o/ t'at Division6 3'ere it 'as its prin&ipal pla&e o/ *,siness 5it'in s,&' area, it )a4 D properl4 *e sai$ to *e $o)i&ile$ t'ere@ *,t 5'ere it $oes not 'ave its prin&ipal pla&e o/ *,siness in t'e >ep,*li&, t'en, /or 5ant o/ an4t'in1 *etter, it ),st *e sai$ to *e $o)i&ile$ in t'e area in 5'i&' it is re1ar$e$ as *ein1 present6 Solo)on A#J pointe$ o,t in #adrassa 8nBu(an Isla(ia v Johannesbur" #uni$ipal Coun$il 1919 AD 4<9 at 449 t'at? "
7666 (I)t is &lear t'at a &o)pan4 &an no )ore Go&&,p4G t'an it &an resi$e on a stan$6 8or a &o)pan4 is a p,rel4 le1al &on&eption? it 'as no p'4si&al existen&e, *,t exists onl4 in &onte)plation o/ la5, so t'at it is in&apa*le o/ *ein1 p'4si&all4 present at an4 pla&e67
B,t 2,st as a resi$en&e &an /or &ertain p,rposes *e attri*,te$ to a &o)pan4, so &an a presen&e6 An$ in )4 opinion t'e e1islat,re, in 8 re9,irin1 in s 1:((1) o/ t'e #o)panies A&t t'at ever4 &o)pan4 s'all 'ave a re1istere$ o//i&e in t'e >ep,*li&, 'as attri*,te$ to t'e &o)pan4 a stat,tor4 presen&e t'ere6 It is t'e pla&e at 5'i&' t'e &o)pan4 )a4 al5a4s *e /o,n$6 T'e provision in s 1:((1)(d) t'at a &'an1e in t'e sit,ation o/ t'e re1istere$ o//i&e o/ a &o)pan4 s'all not ta+e e//e&t ,nless t'e >e1istrar 'as re&or$e$ t'e parti&,lars t'ereo/ is $esi1ne$ % to ens,re t'at, /or an4 p,rpose o/ t'e A&t, t'ere is al5a4s a pla&e 5'i&' is t'e re1istere$ o//i&e6 All &o)),ni&ations an$ noti&es )a4 *e a$$resse$, an$ all pro&ess )a4 *e serve$ t'ere, an$ t'e &o)pan47s re&or$s re/erre$ to *4 "lo// J in t'e Dairy Board &ase )a4 *e inspe&te$ t'ere6 Moreover s 12(1) provi$es t'at t'e #o,rt 5'i&' 'as 2,ris$i&tion ,n$er t'e A&t in respe&t o/ an4 &o)pan4 s'all *e an4 0rovin&ial or o&al H Division o/ t'e S,pre)e #o,rt 5it'in t'e area o/ 2,ris$i&tion 5'ereo/ t'e re1istere$ o//i&e o/ t'e &o)pan4 or t'e )ain pla&e o/ *,siness o/ t'e &o)pan4 is sit,ate$6 T'e &onsi$erations o/ &onvenien&e re/erre$ to in t'e Dairy Board &ase supra at ::1% - H, &itin1 8ppleby (Pty) Ltd v Dundas Ltd1948 (2) SA 9(. (") I at 911, &all i)perativel4 /or so)e pla&e, t'e lo&ation o/ 5'i&' is as&ertaina*le at t'e #o)panies >e1istr4, at 5'i&' t'e &o)pan4 )a4 5it' &ertaint4 *e /o,n$ to *e 7present76 T'at pla&e is t'e re1istere$ o//i&e6 In t'e present &ase t'e prin&ipal pla&e o/ *,siness o/ t'e $e/en$ant is in Trans+ei6 It $oes not &arr4 on *,siness in So,t' A/ri&a6 Apart /ro) t'e /a&t t'at it 5as in&orporate$ in So,t' A/ri&a, its onl4 J &onne&tion 5it' t'e
1991 (1) SA p368
!I#HO AS AJA
A >ep,*li& is t'at its re1istere$ o//i&e is in Jo'annes*,r16 It is t'ere/ore 5it'in t'e 2,ris$i&tion o/ t'e 3 D t'at t'e $e/en$ant ),st *e ta+en to *e $o)i&ile$6
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Milne JA &on&,rre$ in t'e 2,$1)ent o/ !i&'olas AJA6 Appellant7s Attorne4s? Deneys Reit>, Jo'annes*,r1@ ebbers, B Bloe)/ontein6 >espon$ent7s Attorne4s? RaphaelyE einer, Jo'annes*,r1@ Israel & %a$!stein, Bloe)/ontein6 #
2005 Juta and Company, Ltd.
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Bisonboard LTD V K Braun Woodworking Machinery (Pty) LTD 1991 (1) Sa 482 (A)

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Bisonboard LTD V K Braun Woodworking Machinery (Pty) LTD 1991 (1) Sa 482 (A)

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BISONBOARD LTD v K BRAUN WOODWORKING MACHINERY...

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