Table of Contents
Key points:
- The South African Supreme Court of Appeal (SCA) has ordered Trustco, led by CEO Quinton van Rooyen, to pay punitive costs for its unsuccessful four-year litigation against the Johannesburg Stock Exchange (JSE) to avoid restating its 2019 financial results.
- Trustco must comply with the JSE’s mandate to restate its financials unless it chooses to appeal the SCA’s ruling to the South African Constitutional Court.
- The SCA’s ruling emphasizes the regulatory authority of the JSE and serves as a warning to other companies about the consequences of prolonged litigation without substantial grounds
The South African Supreme Court of Appeal (SCA) has imposed a punitive costs order on Trustco, the Namibian holding company led by Founder and CEO Quinton van Rooyen. Trustco had been entangled in a four-year legal dispute with the Johannesburg Stock Exchange (JSE).
The company attempted to avoid restating its 2019 financial results, which the JSE mandated. The SCA ruled that Trustco’s litigation had “no reasonable prospect of success”. Trustco must now comply with the JSE’s order to restate its financials unless it seeks a further appeal to the South African Constitutional Court.
Punitive costs order
The SCA’s decision means that Windhoek-based Trustco must pay the JSE punitive costs on a solicitor-client basis. This includes covering the costs of two solicitors. This significant financial penalty underscores the gravity of the situation. The court’s ruling shows Trustco’s unsuccessful attempts to sidestep the JSE’s regulatory requirements.
This legal outcome marks a crucial turning point for Trustco, requiring the company to adhere to the financial oversight imposed by the JSE. The ruling emphasizes the regulatory authority of the JSE and serves as a cautionary tale for other companies. Trustco now faces the decision of either accepting the SCA’s ruling or risking another appeal to the Constitutional Court, which would further extend the legal battle and potentially incur additional costs.
Trustco Group, based in Windhoek, operates across banking, insurance, property, and wealth management sectors. The company boasts a robust investment portfolio with a well-balanced asset allocation.
On average, 34 percent of Trustco’s assets are denominated in U.S. dollars, with the remaining 66 percent invested in Namibian dollars. The van Rooyen family holds a major 63.94-percent ownership stake in Trustco, representing 1,004,000,060 ordinary shares, solidifying Quinton van Rooyen’s position as one of Namibia’s wealthiest individuals.
