THE PSL has rejected Highlands Park's sale.
Information reaching SunSport is that the league has declined the sale based on section 112 of the Companies Act, according to well respected attorney Mandla Tshabalala.
Tshabalala represents the club's co-director, Sinky Mnisi, who has vowed to fight tooth and nail to stop the sale of the club.
Mnisi, who owns 20% of the club, argues that the deal was concluded behind his back, and was not prepared to sign any documents pertaining to the club's sale.
"Yes the sale was declined by the PSL based on section 112 of the Companies Act," said Tshabalala.
According to Tshabalala, the clause states that: "A company might not dispose all or part of its assets unless it has been approved by a special resolution of the shareholders."
He then argued that Mnisi has not approved it "and he's a shareholder".
"He did not participate in the resolution to give consent for the team to be sold," explained Tshabalala.
It is expected that the shareholders, Mnisi, Brad Kaftel and Larry Brookstone, are expected to have a special meeting on Tuesday to try and find common ground, as the buyer, Tim Sukazi, is already working on a plan to play in the PSL next season.
Sukazi on Monday had a meeting with some Highlands Park players where the players were told how things will work, and those not interested can find club's elsewhere, SunSport has been told.
Sukazi has already appointed Dan Malesela as head coach and Ashley Makhanya as assiatnt while Thabo Nthethe is the team manager of the TS Galaxy in the PSL, pending the sale approval by the league.
Tshabalala said Mnisi's gripe "is simple": "Not everything was done properly, not everything was put on the table. He says lay everything bare on the table, let me satisfy myself. They said the club is indebted, where does it come from? Once he's satisfied then he will give approval at anytime for the sale to continue.
"How do you let go your assets, while being a shareholder, by someone telling you to sign because there's no money? As a shareholder you're entitled to know who the team is sold to, and who do you owe."
He said currently they are just waiting for the meeting proposal from the club's majority shareholders on where and when to meet.,
"We sent them a letter, we're just waiting for them to come back to us," said Tshabalala.
"We've been vindicated that this thing cannot go through without one of the shareholders in agreement. A special resolution must involve all. The resolution says all people must vote, then how do you vote if you're not there? It's a sad vindication. Until this whole thing has been resolved among shareholders then the transaction will go through."
SunSport's understanding is the sale of the club to Sukazi might continue, as long as Mnisi gives consent following a meeting that they will have this week.
