Kibaki seeks to block new board in firm row
What you need to know:
- Justice Lucy Waithaka of the Environment and Lands court had ordered that two sets of directors continue managing the company jointly.
- The two have moved to the Nyeri Environment and Lands court as the battle for control rages.
- She also ordered the company to elect new board officials to run its affairs.
- Justice Waithaka also gave new board officials to be elected power to access the money collected by the company.
Former President Mwai Kibaki and the director of a company they claim ownership of have moved to court to stop the election of a new board of management.
The two have moved to the Nyeri Environment and Lands court as the battle for control rages.
The Mathingira Wholesalers Company Ltd, located in Nyeri town, has been at the centre of a management dispute since 2008.
Through lawyers Kamu Kuria and Munyori Karanja, Mr Kibaki and Mr Kimwatu Kinyungu want a judgement issued on July 12 stayed pending determination of an appeal they have filed.
Justice Lucy Waithaka of the Environment and Lands court had ordered that two sets of directors continue managing the company jointly.
She also ordered the company to elect new board officials to run its affairs.
Justice Waithaka also gave new board officials to be elected power to access the money collected by the company.
“Unless the stay sought is granted, the defendants will suffer substantial loss, in that they will lose the suit property and revenue generated by it to unlawful shareholders of the Company,” said Mr Karanja.
The company together with the other directors, through lawyer Lucy Mwai, opposed the application of stay.
“The other directors have accepted while two are dead,” she said.
She said if the orders of stay of judgement are allowed, the company will suffer greatly as it has never conducted any business since 2008 when the case was instituted.
Justice Waithaka will deliver the ruling on October 12.
