MAGIC SOFTWARE ENTERPRISES LIMITED Versus NEDBANK ZIMBABWE LIMITED

Key Issues

• {"issue_text":"Whether Magic Software had proper authority to institute proceedings","issue_type":"procedural","dispositive":"no","related_facts":"Board resolution dated 30 March 2022 authorizing proceedings, founding affidavit deposed 12 March 2022"}
• {"issue_text":"Whether Magic Software's claim had prescribed","issue_type":"procedural","dispositive":"no","related_facts":"Directive RT120/18 issued 4 October 2018, demand made 27 June 2019, application filed 22 April 2022"}
• {"issue_text":"Whether the funds in the escrow account constitute a foreign loan and foreign obligation under section 44C (2)(b) of the RBZ Act","issue_type":"law","dispositive":"yes","related_facts":"Account opened for foreign entity, deposits from local Tel-One, redesignation by RT120/18"}
• {"issue_text":"Whether Nedbank breached its contractual duties to Magic Software","issue_type":"mixed","dispositive":"yes","related_facts":"Banker-customer relationship, failure to advise on Exchange Control requirements, failure to register blocked funds"}
• {"issue_text":"Whether the conversion of funds from USD to RTGS dollars was unlawful and ultra vires","issue_type":"constitutional","dispositive":"yes","related_facts":"Effect of Directive RT120/18 on USD-denominated account"}

Background