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ARTICLE · 11 JUNE 2020

Where Does A Company Reside And Why Does It Matter?

The provision that the court has jurisdiction ‘over all persons residing or being in such area does not enlarge the jurisdiction endowed by the words 'causes arising'.

South AfricaCorporate/Commercial Law

The provision that the court has jurisdiction 'over all persons residing or being in such area does not enlarge the jurisdiction endowed by the words 'causes arising'. At common law, however, the residence (but not the mere physical presence) of a defendant or respondent within the court's area of jurisdiction usually enables one to say that the cause ‘arises' within the court's area of jurisdiction. For purposes of section 21(1) of the Superior Courts Act 10 of 2013 as amended, the question whether a cause 'arises' within a court's area of jurisdiction is determined by common law.

In Mfwethu Investments CC t/a Recharger Prepaid Meters v Citiq Meter Solutions (Pty) Ltd t/a Citiq Prepaid (13124/19) [2020] ZAWCHC 40, facts were as follows:

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