The SCA disallowed the appeal.  The appellant’s cause of action was founded in delict and was for pure economic loss.  Shareholders cannot sue for the diminution in the value of their shares because any wrong can only be committed against the company and not a shareholder.  This means that  shareholders are not entitled to recover any such losses.

Itzikowitz v Absa Bank Ltd (20729/2014) [2016] ZASCA 43 (31 March 2016) per Ponnan JA (Cachalia, Willis and Saldulker JJA and Fourie AJA):

“Broadly stated, a derivative action (also referred to as the exception to the rule in Foss v Harbottle) arises where a shareholder brings a claim on behalf of the company, to recover for the company a loss which he alleges has been sustained at the hands of the individuals in control of the company. The benefits of the action accrue to the company and not the shareholder. To the extent that the benefits improve the balance sheet or prospects of the company, the reflective benefit may be realised in the value of his shares” [fn 14].