By Judy Ogutu
A former employee of Equity Bank Kenya Limited is seeking Sh160.4 million from the financial institution for its alleged failure to pay him the correct value for his shares.
Mr Samuel Gachie Kamiti, the bank’s former General Manager of Alternative Business Channels Department, claims the defendant paid him Sh24.3 million as opposed to Sh103.2 million, which was the value of his shares at the Nairobi Stock Exchange (NSE) as at March 2, 2010.
The NSE closing prices for Equity Bank shares was Sh15.75 per share.
Kamiti claims that during his tenure at the bank, he had purchased 6,557,080 Equity Employees Share Ownership Plan (ESOP) shares and consequently became a registered holder of the said fully paid units.
Through his advocate Matthew Oseko, he argues that following a re-organisation of Equity in January, the bank dissolved the department he was heading.
He alleges he was forced to resign on March 2 after the bank refused to allow him to retire despite dissolution of his department.
He then requested that his shares be transferred into his name ‘with immediate effect.’ Kamiti has also sued trustees of ESOP, James Njuguna Mwangi, Mary Wangaru Wamae, Kenneth Mbaabu Muchiri, Gerald Gachoka Warui and Andrew Mwangi Kimani on their own behalf and also as trustees.
Total contributions
He claims in a letter dated March 13, the bank’s company secretary informed him that under the ESOP Trust Deed, his contributions to the scheme totalling Sh24.3 million had been refunded to him by being credited in his bank account following his "separation from the bank."
Kamiti alleges the decision by the trustees to deposit the money into his account was in breach of their fiduciary duty to him as dictated by the Deed Settlement dated August 29, 2005, as well as rules of ESOP.
Following the defendants’ alleged wrongful, illegal and fraudulent conduct, his interest in the Settlement Fund has been wiped out and he has, therefore, suffered loss and damage.
