Latest news with #YWBNMutualBank
IOL News
a day ago
- Business
- IOL News
Judge highlights flaws in urgent application process against Reserve Bank
The High Court in Johannesburg said lawyers should afford their opponents time to respond when serving them with legal applications. Image: File The principle that the other side must also be heard is sacrosanct in the South African legal system, a judge said in criticising the conduct of an applicant who served the notice of an urgent application on the SA Reserve Bank after hours, on the eve of a public holiday. The urgent application only came to the attention of the Reserve Bank days later, after an order was already issued against it behind its back. Not knowing about the notice of the looming application, as it was served on a security guard on the premises, the Reserve Bank never showed up in court to oppose the application. It now turned to the Gauteng High Court, Johannesburg, where it successfully obtained an order to overturn the order against it. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Judge Roland Sutherland remarked that the only times that a court will consider a matter behind a litigant's back are in exceptional circumstances. 'The phrase 'exceptional circumstances' has, regrettably, through overuse and the habits of hyperbole, lost much of its impact. To do that phrase justice, it must mean 'very rarely',' he said. Gauteng High Court, Johannesburg, has allowed YWBN Mutual Bank to rebrand as eNL Mutual Bank. Image: IOL / Independent Newspapers Gauteng High Court, Johannesburg, has allowed YWBN Mutual Bank to rebrand as eNL Mutual Bank. Image: IOL / Independent Newspapers YWBN Mutual Bank obtained an order on May 7 this year, in which the Reserve Bank was told to register a name change of the YWBN Mutual Bank to eNL Mutual Bank and do so within 48 hours of the service of the order. The Reserve Bank is the statutory authority to confer and approve the name of a bank. On Wednesday, April 30, the urgent name change application was issued. The sheriff served it at 16:43 to the security guard at the Reserve Bank's premises. The notice of motion called on the Reserve Bank to file an answer the next day - within 24 hours of service - and further stated that the case would be enrolled on May 6. Judge Sutherland noted that Wednesday, April 30, was the day before a public holiday, Workers' Day. Friday was therefore a trapped 'working' day between the public holiday and the weekend, rendering the period May 1 to May 4 a de facto long weekend for many people. 'Why was it necessary to serve outside of business hours? Was it not foreseeable that the documents would not reach the desk of a responsible official before Monday?' the judge questioned. He said the expectation that an answer would be forthcoming within 24 hours on a public holiday was 'absurd'. 'This was a service on an organ of state, a category of litigant whose officials show no evidence of being burdened by a Calvinistic work ethic,' the judge remarked. The application only came to the attention of a person who knew what to do on May 6. The security guard was clueless as to the urgency and apparently denied that the urgency of the matter had been explained to him by the sheriff. A telephone call at the time between the guard and an official of the Reserve Bank about the arrival of the documents was afflicted by connectivity problems and confusion as to what should have happened. 'What this saga of mishaps illustrates is that it is unprofessional to take a pedestrian approach to the service of urgent applications. It is not part of our legal procedure to move by stealth to court against an adversary,' the judge said in overturning the initial order against the Reserve Bank.
The Star
25-05-2025
- Business
- The Star
AFRIBIZ takes on Nthabeleng Likotsi's YWBN over collapsed R9 million share deal
Sifiso Mahlangu | Published 30 minutes ago What was set to be the first black and female-owned bank is now facing a bleak future. AFRIBIZ Financial Services is taking legal action against YWBN Co-Operative Financial Institution and its founder, Nthabeleng Likotsi, after a failed R9 million share deal in the controversial YWBN Mutual Bank. AFRIBIZ says it is determined to see Likotsi do the right thing. The dispute began when AFRIBIZ paid R9 million to buy a 26% stake in YWBN Mutual Bank. However, the deal collapsed after YWBN allegedly failed to submit important compliance documents required by the Prudential Authority, South Africa's financial regulator. Without these documents, the regulator could not approve the issuing of shares, putting the entire deal on has accused YWBN of poor management and legal irregularities. The company says it spent significant time and money preparing for the investment and still wants to own the 26% stake it was promised. In a letter to AFRIBIZ, YWBN admitted it could not meet the compliance requirements and offered to return the R9 million, even though the payment was originally marked as 'non-refundable.' Still, this offer did not settle the matter. Instead, YWBN suggested offering just 2% of shares in full and final settlement, which AFRIBIZ rejected outright.'Our client remains committed to acquiring the full 26% shareholding,' AFRIBIZ's lawyers said in a statement following a meeting in April 2024. This clash comes as YWBN faces growing criticism about its operations, governance, and leadership. Likotsi, once praised as South Africa's first woman to start a mutual bank, is now under scrutiny for a lack of transparency and mismanagement. Back in 2021, the Companies and Intellectual Property Commission (CIPC) Tribunal ordered YWBN to return money to investors. It ruled that the bank had not followed legal rules under the Co-operatives Act, had poor financial recordkeeping, and had collected questionable 'non-refundable' membership fees from investors. More recently, investors have raised concerns about YWBN relying on celebrity endorsements instead of proving its financial credibility. Legal experts say this case highlights risks in investing in new or unregulated financial institutions. Advocate Mandla Tshabalala, a corporate law specialist, said, 'For any bank or financial institution, compliance and transparency are not optional — they're essential. Regulators must stay alert.' As the legal battle heats up, AFRIBIZ is demanding that YWBN follow through on the original share agreement. Despite YWBN's offer to return the R9 million, AFRIBIZ says it will continue legal action until the full deal is honoured. This high-profile case has put the spotlight on South Africa's growing but fragile alternative banking sector. With trust in YWBN fading, many are now wondering if the dream of a women-led mutual bank can survive the fallout. Asked about the previous issues with the CIPC Tribunal and now the legal dispute with AFRIBIZ, Likotsi said the YWBN received its clearance certificate from the CIPC, which indicates that we are compliant with all governance requirements. 'AfriBIZ Financial Services had a business interest in YWBN, when they couldn't meet the minimum basic compliance requirements, we explored different ways they could participate, however, we could not reach an agreement. YWBN remains open and committed to engaging AfriBIZ in future business endeavours'
IOL News
25-05-2025
- Business
- IOL News
AFRIBIZ takes on Nthabeleng Likotsi's YWBN over collapsed R9 million share deal
Nthabeleng Likotsi, once praised as South Africa's first woman to start a mutual bank, is now under scrutiny for a lack of transparency and mismanagement. Image: Picture: Supplied What was set to be the first black and female-owned bank is now facing a bleak future. AFRIBIZ Financial Services is taking legal action against YWBN Co-Operative Financial Institution and its founder, Nthabeleng Likotsi, after a failed R9 million share deal in the controversial YWBN Mutual Bank. AFRIBIZ says it is determined to see Likotsi do the right thing. The dispute began when AFRIBIZ paid R9 million to buy a 26% stake in YWBN Mutual Bank. However, the deal collapsed after YWBN allegedly failed to submit important compliance documents required by the Prudential Authority, South Africa's financial regulator. Without these documents, the regulator could not approve the issuing of shares, putting the entire deal on has accused YWBN of poor management and legal irregularities. The company says it spent significant time and money preparing for the investment and still wants to own the 26% stake it was promised. In a letter to AFRIBIZ, YWBN admitted it could not meet the compliance requirements and offered to return the R9 million, even though the payment was originally marked as 'non-refundable.' Still, this offer did not settle the matter. Instead, YWBN suggested offering just 2% of shares in full and final settlement, which AFRIBIZ rejected outright.'Our client remains committed to acquiring the full 26% shareholding,' AFRIBIZ's lawyers said in a statement following a meeting in April 2024. This clash comes as YWBN faces growing criticism about its operations, governance, and leadership. Likotsi, once praised as South Africa's first woman to start a mutual bank, is now under scrutiny for a lack of transparency and mismanagement. Back in 2021, the Companies and Intellectual Property Commission (CIPC) Tribunal ordered YWBN to return money to investors. It ruled that the bank had not followed legal rules under the Co-operatives Act, had poor financial recordkeeping, and had collected questionable 'non-refundable' membership fees from investors. More recently, investors have raised concerns about YWBN relying on celebrity endorsements instead of proving its financial credibility. Legal experts say this case highlights risks in investing in new or unregulated financial institutions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Advocate Mandla Tshabalala, a corporate law specialist, said, 'For any bank or financial institution, compliance and transparency are not optional — they're essential. Regulators must stay alert.' As the legal battle heats up, AFRIBIZ is demanding that YWBN follow through on the original share agreement. Despite YWBN's offer to return the R9 million, AFRIBIZ says it will continue legal action until the full deal is honoured. This high-profile case has put the spotlight on South Africa's growing but fragile alternative banking sector. With trust in YWBN fading, many are now wondering if the dream of a women-led mutual bank can survive the fallout. Asked about the previous issues with the CIPC Tribunal and now the legal dispute with AFRIBIZ, Likotsi said the YWBN received its clearance certificate from the CIPC, which indicates that we are compliant with all governance requirements. 'AfriBIZ Financial Services had a business interest in YWBN, when they couldn't meet the minimum basic compliance requirements, we explored different ways they could participate, however, we could not reach an agreement. YWBN remains open and committed to engaging AfriBIZ in future business endeavours'
IOL News
08-05-2025
- Business
- IOL News
Court allows YWBN Mutual Bank to rebrand as eNL Mutual Bank ahead of launch
South Gauteng High Court allows YWBN Mutual Bank to rebrand as eNL Mutual Bank ahead of the launch Image: IOL / Independent Newspapers In a landmark ruling, the South Gauteng High Court has granted an urgent interim order in favour of YWBN Mutual Bank, allowing the bank to change its name to eNL Mutual Bank ahead of its scheduled launch next month. The court's decision on Wednesday comes amid ongoing delays and frustrations over the South African Reserve Bank (SARB) Prudential Authority's (PA) refusal to approve the name change, which threatens the bank's operational timeline. Background and Legal Action YWBN Mutual Bank was initially approved to establish in March 2021, with the South African Reserve Bank (SARB) granting authorisation on January 29, 2024, under Section 13 of the Mutual Banks Act. Despite this, the bank encountered hurdles when seeking the SARB's permission to amend its name. The Reserve Bank showed little interest in processing the request, effectively stalling the bank's plans to rebrand ahead of its launch. In response, Nthabeleng Likotsi, the founder of YWBN Mutual Bank, along with her legal team, filed an application in the South Gauteng High Court seeking an urgent order to compel SARB to approve the name change. Court Ruling and Key Quotes Judge Mudau presided over the matter and delivered a ruling that, while not fully deciding on the merits of the name change, granted a provisional order allowing the bank to proceed with rebranding. The court ordered SARB to, within 48 hours, record the new name, eNL Mutual Bank, in its official records. The court's judgment stated, "The respondent and the registrar are directed to, within 48 hours of this order, enter the new name in their records in place of the former name, provided the certificate previously issued is delivered for cancellation. A new certificate shall then be issued to the applicant under the new name." The court further indicated that SARB has until June 9 to justify why a full order should not be granted, effectively giving the regulator a final deadline to act. Impact and Significance This ruling marks a historic milestone, making Likotsi the first woman in South Africa to have her name associated with a bank—an achievement that places her among the ranks of notable banking pioneers such as Barclays and JP Morgan. In her affidavit, Likotsi stated that the proposed name has already been tested in the market during the 'Own the Bank Share Scheme,' surpassing its initial projections by attracting 10,000 subscribers—more than three times the target. 'This overwhelming response demonstrates strong public support for the name and the bank's mission." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
