Hannah Mwihaki Muturi, Zachariah Kahari Muthambure, George Kamau Macharia , Francis John Wanyage Mwangi, David Maina Gachanja , Mary Wanjiku Gichanga , Lydia Wangari Mwangi & Lari Nyakinyua (Solai Farm) Limited v Registrar of Companies & Colleta Maweu (Assistant Registrar of Companies) [2016] KEHC 2996 (KLR)

REPUBLIC OF KENYA

IN THE HIGH COURT OF KENYA

AT NAIROBI

JUDICIAL REVIEW MISC. APPLICATION NO.  94 OF 2014

HANNAH MWIHAKI MUTURI………….....…..................................………...1ST APPLICANT

ZACHARIAH KAHARI MUTHAMBURE…..…......................................…......2ND APPLICANT

GEORGE KAMAU MACHARIA …………..….........................................……3RD APPLICANT

FRANCIS JOHN WANYAGE MWANGI ….......…................................….…..4TH APPLICANT

DAVID MAINA GACHANJA …….………........................................….…….....5TH APPLICANT

MARY WANJIKU GICHANGA …………….........................................……….6TH APPLICANT

LYDIA WANGARI MWANGI….…………………..........................................….7TH APPLICANT

LARI NYAKINYUA (SOLAI FARM) LIMITED …................................................8TH APPLICANT

VERSUS

THE REGISTRAR OF COMPANIES………………..........................................RESPONDENT

COLLETA MAWEU (ASSISTANTREGISTRAR OF COMPANIES).….INTERESTED PARTY

RULING ON DIRECTIONS

This  court notes that on 11th March 2014  the Exparte applicants  appeared  before Honourable  Korir J with a  chamber summons  dated  11th March  2014   seeking for leave  of court to  file judicial Review  proceedings seeking  for orders  of certiorari and prohibition  against  the respondent Registrar  of Companies  and more specifically,  to quash the decision of the respondent  made  on 3rd February  2014  calling for  annual general  meeting  of the  8th applicant company  Lari Nyakinya ( Solai Farm) Limited, and  to prohibit  the said  respondent   from continuing, hearing  and conducting, annual general  meeting  of the  8th applicant pursuant  to  the notice issued  by the 8th applicant.

Honourable  Korir J did  certify the matter as  urgent and  he also directed  the applicants to serve the  application upon  the respondent, interested  party and the shareholders  of the  8th applicant  for interpartes  hearing on 13th March  2014.  On  13th March  2014, the parties  advocates  present  before the court recorded a consent   order which    was adopted  by the court  in the following  terms:

“The application dated 11th March 2014 is compromised in the following terms;-

1. The 8th applicant’s Annual General meeting scheduled for 14th March, 2014.

2. That the  8th applicant’s Annual General meeting  shall   be held  at the  traditional venue of that company at Kimende;

3. The Registrar of Companies   to convene  and conduct   the Annual General  meeting  of the  8th applicant company;

4. That the cost of conducting the meeting to be met by the 8th applicant.

5. That there will be no order as to costs.”

The consent   was accordingly  signed  by all  the parties’  advocates. later on  4th May  2014, the  applicants filed an application  dated  13th May 2014  under certificate  of urgency  seeking among others, to stop the Annual General Meeting scheduled  for on 16th May  2014, supply of  certified copies of the  Articles and  Memorandum of Association of the 8th applicant  company  and an  official search of the status of the company detailing  the  original and current  members and their details ; a filed  prospectus of the 8th applicant  company  and an official search  of the status of company detailing  the original and  current  members and their details; a filed  prospective  of the 8th applicant  to confirm  whether  it  converted from a private  to a  public company.

The learned  Judge Korir  declined  to stop the  scheduled  Annual General Meeting  and directed   the applicant  to serve   the respondent  and interested  parties. in the intervening  period, the  1st applicant  secretary of the 8th applicant  company  passed  on.  That application  dated  13th May 2014   was later  abandoned  by a  withdrawal  letter  dated  28th May  2014.

Regrettably, following the demise  of the 1st applicant, a dispute arose relating to her burial and an application to stop the  burial  16th June  2014, which application  was withdrawn on 16th June 2014  with no  orders as to costs.

On  25th June  2014, Mr Njuguna  appeared  before Honourable  Odunga  J with an application under certificate  of urgency  dated  24th June  2014   seeking for an injunction  restraining  the  persons purportedly  elected  as directors  of the  8th applicant on 16th May 2014  from taking over  office, running  and  or management of the affairs of  the 8th applicant  company  until the application is heard  and determined; nullification of the elections  held on  16th May  2014; the interim Board of Directors  elected  on 5th December  2013  be allowed to continue  in office pending  proper  elections, review  of the orders  of  13th March 2014  which appeared  to give  the Registrar  of Companies   acarte  blanceto determine  who the eligible  members are to participate  in the Annual General Meeting  of the 8th applicant regardless  of their  membership status; and  that the  court  do give  proper directions  regarding  the  conduct of  the Annual General Meeting   of the  8th  applicant  having regard  to membership thereof, which  remains a private  company  limited  by shares   as opposed  to a public  company.  The said application claims that the respondent  had pursuant  to the orders  on 13th March  2014 allowed  strangers-non  members  of the  8th applicant company to participate  in  its Annual General  Meeting  and election of Directors  in that the  list of  774 members  who participated  in the Annual General Meeting are not members   of the 8th applicant hence  not eligible  to elect officials s  of the  8th applicant;  and that those  elections   were therefore  illegitimate  and that they  would  legitimize  the illegal  alienation, wasting  and squandering  of  the assets  of  the 8th applicant.

on 22nd  July 2014 the 3rd respondent  again filed another  application dated 17th  July 2014  seeking to restrain the  applicants  from purporting  to act as  officials of Lari Nyakinya (Solai Farm) Ltd; that the applicants   be ordered  to hand over  documents  in their possession to newly  elected  officials.  That application   was by consent ordered to be heard together with the application dated 24th June 2014.  Parties   were allowed to file further affidavits and supplementary affidavits   and written submissions   were filed   and exchanged between/among parties.

Before the above two applications could be heard and determined, a proposed interested party   moved in with an application dated 27th February 2015 seeking to be enjoined in the proceedings.  The proposed interested party was Lari Nyakinya Limited, claiming that it was a majority shareholder   in Lari Solai Farm.  That application dated  27th February 2015 was on 28th May 2015  withdrawn and a  fresh application filed on the same  day.  on 19th August  2015, Honourable Korir J directed  that the application  dated  24th June  2014, 17th July 2014  and 28th May 2015  be heard  on 19th November  2015.  Nothing transpired on 19th November 2015.

Again, on 18th May  2016   the applicants  filed an  application under  certificate of  urgency dated  the same  day seeking to compel the respondents  to surrender  title deed  numbers  IR  10920/1,5157/1       and  1095/1 in the  name of  the  2nd applicant  in their possession to the  2nd applicant or its  directors or that in the  alternative  the said  title documents  be presumed  lost  and the Registrar of Lands  be ordered  to issue  fresh  title documents  to the 2nd applicant.  That application has not been heard.

In the meantime, the application dated  29th May 2015  was heard  on  11th April  2016  and a ruling delivered  on  30th May 2016  dismissing  it and  effectively  rendering the application dated  2nd October 2015  by the same  applicant  which sought  orders directing  the Registrar of Companies  to furnish it  with particulars of its directorship and shareholding  worthless.

Honourable  Korir J  was then transferred  to Busia  High Court  and Honourable  Odunga  did on  20th June 2016  direct that  this matter be placed  before me for  directions  on 6th July 2016 but as  was conceded  in court by  Mr Achoki, the file  was not traced  for action on 6th July  2016 until  later  when it   was found that  proceedings were being  typed  hence  the fixing for directions  on 15th August  2016.

On 15th August 2016, the file was only availed to me in the morning a few minutes to 9. 00a.m.  I had not perused the file to appreciate the proceedings.  I have now endeavoured  to peruse  and  appreciate  the  proceedings hence  this summary  and the  directions that I am about to  give herein below.

In my  view, the applications which  are now  pending for  hearing and  determination are the ones  dated  24th June  2014,  17th July 2014  and the latest  application which is  dated  18th May  2016.  For orderliness  of proceedings, and since all the  three applications  were filed  under certificate  of urgency, I direct  that all  the  three applications be  heard together  by way of oral  submissions in addition to the  written submissions that are  already filed.  Any party who wishes  to file  a response  to the application dated 18th May 2016  to do  so  within 7 days  from the date hereof.

In view  of the long  delay in determining  this matter, occasioned  by the numerous  applications from  time to time, this matter  shall be heard on priority basis on a date to be fixed by the court with consent of all the parties’ advocates on record and  there shall be no more  adjournments  accorded  to the  any of the parties who are hereby discouraged from filing application after application which do not seek to end the dispute.

Dated, signed and delivered in open court at Nairobi this 19th day of September, 2016.

Orders accordingly.

R.E. ABURILI

JUDGE

In the presence of:

Mr Achoki for 1st and 2nd applicants

Mr Njuguna for Respondents

N/A for Interested Party

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