{"id":82494,"date":"2024-08-24T12:04:38","date_gmt":"2024-08-24T12:04:38","guid":{"rendered":"https:\/\/chezaspin.com\/blog\/index.php\/2024\/08\/24\/court-blocks-old-mutual-managers-from-selling-companys-assets\/"},"modified":"2024-08-24T12:04:38","modified_gmt":"2024-08-24T12:04:38","slug":"court-blocks-old-mutual-managers-from-selling-companys-assets","status":"publish","type":"post","link":"https:\/\/chezaspin.com\/blog\/court-blocks-old-mutual-managers-from-selling-companys-assets\/","title":{"rendered":"Court blocks Old Mutual managers from selling company\u2019s assets"},"content":{"rendered":"

NAIROBI, Kenya, Aug 24 \u2013 The management of Old Mutual PLC has been blocked from selling the assets of the company by the High Court.<\/strong><\/p>\n

This follwed a suit by a shareholder of the company challening the decision.<\/p>\n

\u201cIn the interim, orders in terms\u00a0 of prayer 2 are granted,\u201djustice J.W.W Mongare read.<\/p>\n

Last month, the Tanzanian subsidiary UAP Insurance Tanzania was sold for Sh73.5 million<\/p>\n

In the petition challenging the suit, Old Mutual was\u00a0 listed by the Capital Market Authority in November 2012 after a public offer.<\/p>\n

It stated that the directors and key shareholders of Old Mutual started disposing their shares and leaving the company.<\/p>\n

\u201cIn 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,\u201d the court papers read.<\/p>\n

The petitioner further contends that together with other minority shareholders they\u00a0 have been systematically excluded from participating in the management and decision making processes.<\/p>\n

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.<\/p>\n

Kibe argues that the lack of\u00a0 transparency contravenes section 779 of the Companies Act 2015, which entitles shareholders to inspect company records and be kept informed about the company\u201fs affairs.<\/p>\n

\u201cIt is therefore evident that the affairs of Old Mutual\u00a0 PLC herein are being conducted in a manner oppressive to some part of its members including the Petitioner,\u201dhe argues<\/p>\n

He claims that the company is not making\u00a0 profit because of mis- appropriation of funds and insider trading fraud adding that UAP Holdings PLC rebranding to Old Mutual Holdings PLC\u00a0 completely lost its Corporate Identity.<\/p>\n

\u201cThe 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,\u201dreads court papers<\/p>\n

\u00a0Other orders that Kibe is seekin is the court to order Old Mutual Holding PLC accounts investigated.<\/p>\n

The case\u00a0 also seeks to have Old Mutual Holdings Limited\u00a0 liquidated under the Provisions of the Companies Act and the Insolvency Act.<\/p>","protected":false},"excerpt":{"rendered":"

NAIROBI, Kenya, Aug 24 \u2013 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. \u201cIn the interim, orders in terms\u00a0 of prayer 2 are granted,\u201djustice J.W.W Mongare read. Last month, the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-82494","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/82494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=82494"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/82494\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=82494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=82494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=82494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}