Court blocks Old Mutual managers from selling company’s assets » Capital News
NAIROBI, Kenya, Aug 24 – The management of Old Mutual PLC has been blocked from selling the assets of the company by the High Court.
This follwed a suit by a shareholder of the company challening the decision.
“In the interim, orders in terms of prayer 2 are granted,”justice J.W.W Mongare read.
Last month, the Tanzanian subsidiary UAP Insurance Tanzania was sold for Sh73.5 million
In the petition challenging the suit, Old Mutual was listed by the Capital Market Authority in November 2012 after a public offer.
It stated that the directors and key shareholders of Old Mutual started disposing their shares and leaving the company.
“In January 2015, one of the key investors in the UAP Holdings Dr. Christopher Kirubi was allowed by the company to make a direct sale of his 20,262,808 shares being 9.58% of the issued ordinary shares to the company Respondent for Kshs 3.2 Billion,” the court papers read.
The petitioner further contends that together with other minority shareholders they have been systematically excluded from participating in the management and decision making processes.
Similarly he claims that majority shareholders have denied him and other minority shareholders access to crucial company records, including financial statements, minutes of board meetings, and other documents.
Kibe argues that the lack of transparency contravenes section 779 of the Companies Act 2015, which entitles shareholders to inspect company records and be kept informed about the company‟s affairs.
“It is therefore evident that the affairs of Old Mutual PLC herein are being conducted in a manner oppressive to some part of its members including the Petitioner,”he argues
He claims that the company is not making profit because of mis- appropriation of funds and insider trading fraud adding that UAP Holdings PLC rebranding to Old Mutual Holdings PLC completely lost its Corporate Identity.
“The transaction was secretive and the Petitioner and/or other minority members were not consulted on the entire exercise. Todate the share Certificates of the New holding company have never been issued and the sale of shares over the counter was halted leaving the Petitioner with nothing to show for his immense investment,”reads court papers
Other orders that Kibe is seekin is the court to order Old Mutual Holding PLC accounts investigated.
The case also seeks to have Old Mutual Holdings Limited liquidated under the Provisions of the Companies Act and the Insolvency Act.
About The Author
