This
is an urgent chamber application in which the applicant's legal practitioner
raised a preliminary point which needs to be determined before the Court can
proceed to hear the preliminary points that the respondents raise.
Counsel
for the applicant submitted that Mr Mutamangira should not appear in these
proceedings as a legal practitioner for the first ...
This
is an urgent chamber application in which the applicant's legal practitioner
raised a preliminary point which needs to be determined before the Court can
proceed to hear the preliminary points that the respondents raise.
Counsel
for the applicant submitted that Mr Mutamangira should not appear in these
proceedings as a legal practitioner for the first and second respondents and
that he can only appear as their agent.
The
basis for this is that Mr Mutamangira is intimately and emotionally interested
in matters involving the applicant and the respondents and generally in the
affairs that have developed and culminated in the institution of these
proceedings. Amongst other things he was involved in the investigations that
were conducted and which led to the prosecution of the deponent to the
applicant's founding affidavit….,. This is unethical conduct which this court
should not countenance beyond this stage.
It
is contended that Mr Mutamangira and/or the firm ought to have realised the
impropriety of their participation in these proceedings as legal practitioners
for the first and second respondents. They should have advised their clients
accordingly, and, consequently, of the need for a different firm to represent
them as their legal practitioners. Mutamangira and Associates would then only
act or appear as agents for the said respondents.
The
documents which counsel for the applicant referred the court to in support of
his submissions are mostly attachments to the first respondent's opposing
affidavit which was deposed to by one Godwills Masimirembwa, the Chairman of
the first respondent's Board of Directors. One such document is a letter dated
20 September 2010 authored by the fifth respondent and addressed to Mr
Masimirembwa. Therein, the fifth
respondent directs that the Board investigates and establishes, amongst other
issues, the applicant's shareholding as well as the “standing” of its current
shareholders. Specific reference was made to paragraph 4 of this letter. The
paragraph states, inter alia, that the fifth respondent expected a
professionally compiled report and that a suitable person must be identified to
undertake the investigation or enquiry on the directions given by the fifth
respondent in the letter. It was contended that from the events that ensued Mr
Mutamangira turned out to be the suitable person that was needed. Reference was
made to Annexure GM3 to Godwills Masimirembwa's affidavit. This is a copy of
the minutes of the meeting of the Mining Development Board members with the
applicant's members held at the first respondent's Head Office Boardroom on 19
October 2010. Amongst those recorded as being in attendance at the meeting is
Advocate F. Mutamangira. Counsel for the applicant specifically referred to
para (e) of the minutes…, where the following decision, amongst others, was
made or recorded:
“That
the Core Mining shares in Canadile be transferred to Marange Resources.”
He
submitted that this shows that this was a meeting where the “dismemberment of a
duly registered company was being done or discussed and that this was in the
presence of Mr. Mutamangira. He
submitted that in these circumstances Mr Mutamangira cannot deny the level of
involvement that is being alleged against him as the minutes are an indication
of his intricate involvement in the affairs referred to.
It
was counsel for the applicant's submission that in the scenario postulated by Mr
Mutamangira, in which a legal practitioner gives legal advice to a Board of Directors,
the clear answer is that such legal practitioner cannot, thereafter, represent
the same client as a legal practitioner. (In his submission, this is what
elementary knowledge of the law and elementary corporate governance dictates.) ….,.
It
was also submitted that it would not have been proper for the applicant to
refrain from raising this preliminary issue on the basis of expediency. To do
so would be to allow an extremely bad precedent to be set.
Mr
Mutamangira, in response, submitted that no evidence was placed before the
court to enable it to determine the depth of his alleged involvement in the
matters referred to. He submitted that the allegations made were based on
speculation. As regards the investigation into the affairs of the fourth
respondent, which investigation was conducted at the behest of the fifth
respondent, he submitted that the investigation was conducted by the first
respondent and not by him or his firm. They only provided legal advice and he
cannot thus be said to be or to have been intimately involved in the affairs
that have developed for some time eventually culminating in the filing of the
instant urgent chamber application.
Mr
Mutamangira posed what he appeared to intend to sound as a rhetoric question.
He asked whether counsel for the applicant meant by his submission that he
would be disqualified from acting as a legal practitioner in circumstances
where he had given legal advice to a Board of Directors.
On
a perusal of the documents which are attached to the first respondent's
opposing affidavits, and which were referred to by counsel for the applicant,
it appears clear to me that Mr Mutamangira's, and his firm's, involvement,
cannot, for the purposes of these proceedings, be said to be merely that of a
legal practitioner. He has participated in the pertinent affairs at a level
that precludes him from appearing for the respondents as a legal practitioner
in these proceedings. One clear instance is the attendance at the meeting of 19
October 2010….,.
Whilst
in Central African Building Construction Company (Pvt) Ltd v Construction
Resources Africa (Pvt) Ltd HH112-10 GOWORA J was faced with a different
scenario, it appears to me that the observation that she made at page4 of the
judgment can be made with the same aptness in casu. She said-
“…,.
He (a legal practitioner) has aligned himself so closely with his client's case
that this court can be forgiven for stating that he has displayed an interest
in the case going beyond that of a legal practitioner.”
Similarly,
the reference by counsel for the applicant to Bozimo Trade and Development Co.
(Pvt) Ltd v First Merchant Bank of Zimbabwe and Ors 2000 (1) ZLR 1 (H) is also
apposite. The headnote reads in part-
“Held:
that the legal practitioner should be allowed to represent the company as agent
of the company instead of its legal practitioner. He was entitled to represent
the company as its agent as he was its alter ego, although he was not the sole
or majority shareholder in the company. However, he had such a deep-seated
perception of unfair play on the part of the respondents that he might end up
prejudicing the applicant's case by representing the company. It would be
better for him to hand over the case to legal counsel.”
CHATIKOBO
J, at p4 of the judgment, stated-
“…,.
Although Mr Kara is neither the sole nor the majority shareholder in applicant,
his association with, and the extent of his interest in the applicant, is such
that he should be permitted to represent the applicant. Although he appeared
before me robed as counsel, I ruled that he could only represent the applicant
as its agent and he did so on that basis.”
In
Central African Building Construction Company (Pvt) Ltd v Construction
Resources Africa (Pvt) Ltd HH112-10 GOWORA J stated…,-
“In
Bozimo Trade and Development Co P/L v First Merchant Bank of Zimbabwe and Ors
2000 (1) ZLR 1 CHATIKOBO J, in considering an objection to the appearance as
counsel in the matter before him by a Chairman of the applicant, opined that
due to the relationship of the legal practitioner of applicant with the myriad
affairs of the companies that he was Chairman of and with whose legal brief the
legal practitioner was seized he would not permit him to appear for the same as
counsel but would allow him to appear as an agent of the applicants.”
She
proceeded…,-
“…,.
A legal practitioner's duty is to protect the interests of his client and to
give legal advice. It is not the function of the legal practitioner to then
step into the shoes of the client and to perform acts that are materially
related to the dispute before the court in an endeavour to buttress the
case of his client…,.”
In
conclusion, in relation to the other aspects discussed…, it seems clear to me
that Mr Mutamangira and the legal firm Messrs Mutamangira & Associates
cannot properly be allowed to continue appearing as legal practitioners for and
on behalf of the first and second respondents.
I therefore uphold the preliminary point raised by
the applicant's legal practitioner to the extent stated above.