By Lwazi Dlamini
- Eight permanent members through their lawyers, K.Q Magagula Attorneys write letter of demand to Status Board of Directors instructing them to suspend operations within the next three days.
- The members want matters in court finalized and claim Society no longer serving its purpose.
The unending battle between permanent members of Status Capital Building Society and the current Board of Directors took another interesting twist this week when eight members instructed their lawyers to call for the suspension of the Society operations.
Through a letter of demand from their lawyers, K.Q Magagula Attorneys, dated 15 May 2024, which was delivered to Status Capital Building Society on Wednesday morning,
The permanent members want operations suspended until finalization of the matters pending in Court, failing which a competent Court will be approached for the desired redress.
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The cost of the lawsuit will be borne personally by the Board of Directors and members officers who include Nomfundo Fakudze, Sibusiso Auto Dlamini, Sabelo Msibi and Sanele Kunene.
In the letter, a copy Eswatini Daily News has in its possession, the eight members who have taken the legal route are namely, Nomsa Ndlovu, Fidza Dludlu, Dudu Motsa, Sanelisile Dlamini, Khosi Dlamini, Thuli Mbonane, Nokuthula Dlamini and Sibongile Khoza.
“Our clients instruct us that in your capacity as Board of Directors and member officers, you, Nomfundo Fakudze, Sibusiso Auto Dlamini, Sabelo Msibi and Sanele Kunene,
Have been operating the society (Status Capital) even though there is no cash flow and the business is no longer serving its purpose which is the payment of mature investments to members of the society.
Your conduct is not serving the interest of the society which is your core mandate. You are in total breach of your fiduciary duty by virtue of your capacity as such,”
Reads part of the Letter of Demand sent to Status Capital Building Society Board members and member officers on individual basis.
Eswatini Daily News contacted Status Capital Building Society Executive Director Nomfundo Fakudze to enquire about the letter of demand and she said she had not read the letter of demand and will respond once she had read it.
“I haven’t read it, but I guess I have an idea which angle you’re taking. I will definitely look at it later before I get sidetracked,” she said briefly through a WhatsApp message.
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The permanent members, in the letter, accused the Board of Directors and members officers, of failing to pay investors yet they can pay legal fees, security guards and salaries.
“These acts by their nature are proof that you are operating the society recklessly. Your reckless acts are bringing the society to its knees, and this is shunned upon by section 361 of the Companies Act 2009.
We, are therefore, instructed to demand as we hereby do that you desist from operating the society, recklessly by closing the society within 3 days of receipt of the letter as by the nature of things operations should be suspended until the finalization of the matters pending in Court.
Failing which a competent court will be approached for the desired redress,” the letter of demand reads in conclusion.