Simeka contests contempt ruling

Johannesburg, 07 Feb 2008

Simeka Business Solutions Group says it is investigating a contempt of court action brought against its directors by Business Systems Group (Africa).

The action relates to an order in February last year that the company refrain from using the abbreviation "BSG". This order was applied for by Business Systems Group, which holds the BSG trademark.

Earlier this week, daily newspaper Business Report revealed Business Systems Group had returned to court because Simeka continued to use the letters BSG in its name.

North West premier and Simeka chairman Popo Molefe and company CEO Mohammed Varachia were ordered jailed for 30 days if they did not comply with the original court order within 30 days, the paper reported.

Hit back

However, Simeka is defending itself to shareholders, pointing out it has issued several notices to shareholders regarding the change of its name from Simeka BSG to Simeka Business Solutions Group since November.

These notices always maintained the motivation for the name change was to "align the company's name to more closely reflect the main business of the company".

Despite the company's shareholders approving the name change in mid-November, Simeka was unable to meet its 14 December deadline due to a backlog at the Companies and Intellectual Property Office. The name change eventually came into effect on 28 December.

"In compliance with the court order, all company documentation, whether legal or promotional and including company stationery, as well as domain names, and all and any company signage have been replaced with 'Simeka Business Solutions Group'. The board of Simeka has prudently complied with all terms of the court order timeously," it told shareholders yesterday.

For this reason, the company says, it will contest the contempt of court action brought by Business Systems Group through "proof of timeous compliance".