Court dismisses objection to suspension of Old Mutual asset sale » Capital News
NAIROBI, Kenya, Dec 17 – The High Court has dismissed a preliminary objection challenging the suspension of the sale of Old Mutual assets, terming it unmerited and clearing the way for the petitioner’s case to proceed.
The objection argued that the petitioner, Joel Kibe, lacked locus standi to file the petition or seek related orders, asserting that he was not a registered member of the company under the Companies Act and the Insolvency Act.
The respondent, Old Mutual Limited, also claimed that the petition was frivolous and an abuse of the court process.
In a ruling on Tuesday, Justice Josephine Mongare stated that the issues raised by the respondent required a detailed review of facts and evidence and were not purely legal matters suitable for resolution at a preliminary stage.
“The issues raised, including whether the petitioner was a member of the company at the time of filing, require evidential examination and cannot be resolved as pure points of law,” said Justice Mongare.
“Having considered the submissions, I find that the objection does not meet the threshold for determination as a preliminary point of law. The petition and the related application will proceed to a full hearing, where all evidence will be weighed,” she added.
The Court emphasized that a valid preliminary objection must be based on points of law, not on contested facts.
The petitioner, through court papers, argued that the objection was baseless, asserting ownership of 1,544,900 shares in the company through a nominee account at Genghis Capital Limited.
Kibe also cited oppressive conduct by the majority shareholders, including exclusion from management, dilution of shares, and mismanagement of company assets.
This ruling ensures that the petitioner’s application, filed on August 20, 2024, will now be heard, including arguments on alleged mismanagement and requests for remedies.
The case follows a court order in August blocking Old Mutual’s management from selling company assets.
Old Mutual was listed by the Capital Markets Authority in November 2012 after a public offering.
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