Monday, 23 May, 2022
HomeNews UpdateSAMA averts liquidation by its union over R307m

SAMA averts liquidation by its union over R307m

The SA Medical Association (SAMA) has averted a liquidation application as the Gauteng High Court (Pretoria) by its union subsidiary, SAMATU, in a dispute over the repayment of R307m in membership contributions, writes Rapport.

In 2021, the Labour Appeals Court ordered SAMA to return the membership contributions as it unduly took advantage of the trade union structure to benefit financially from it. Samatu was run as a subsidiary of SAMA while the Labour Relations Act demands independence of unions. The Labour Registrar placed SAMATU under administration in 2019.

Administrator Gerhard Vosloo applied for SAMA’s liquidation, saying he was not getting co-operation to take control over SAMATU’s assets. In the liquidation application, SAMA disputed the amount and also claimed that Samatu owes it more than R15.5m.

Judge Norman Davis held that there are serious disputes of fact which would influence the question of whether or not SAMA is solvent. Davis said all SAMATU contributions are now paid over to the union instead of SAMA and there is therefore no continuous prejudice.

Liquidating SAMA would deprive all members of SAMA and SAMATU of crucial services. It would therefore not be just and equitable to order the liquidation.

 

RRapport article – SAMV nie gelikwideer in dispuut met doktersunie (Restricted access)

 

See more from MedicalBrief archives:

 

Concourt rejects SAMA appeal over millions in trade union deductions

 

SAMA faces winding-up application over R370m dispute with its union

 

Union's battle with SAMA is attempt at 'daylight robbery’ — Founding chair

 

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