A family feud and legal spat between the co-directors of the Summerstrand Hotel in Port Elizabeth have resulted in one of the siblings being declared a delinquent director and removed as a director from the companies they inherited from their father.

The Herald reports the protracted court case between Mark Hartmann and his sister, Inge Hacker, culminated in Eastern Cape High Court (Port Elizabeth) Judge Buyiswa Majiki declaring that Hartmann be removed as a director of Bex Hotel (Pty) Ltd, the holding company of the Summerstrand Hotel, and John Michael (Pty) Ltd, a property-owning company.

Hacker brought the application to have her brother declared a delinquent director and have him removed from the companies’ boards, and for her to be authorised to bring further proceedings against Hartmann in the name of the two companies for repayment of financial assistance provided to him in contravention of the Companies Act.

During the court proceedings, Hartmann claimed that his conduct was above board and that he was entitled to withdraw funds from the businesses as remuneration.

However, Majiki found that Hacker had made a solid case and granted the relief she requested, which included giving her the right to sue Hartmann in his personal capacity on behalf of the companies to recoup the money he had allegedly misappropriated.

Full report in The Herald (subscription needed)

Hacker v Hartmann and Others