Court stops firm from selling shares in Sh100m dispute over potato processing business
A company has been stopped from dispossessing a rival firm in a Sh100 million dispute involving vegetable processing in Nyandarua County.
Lady Justice Rachel Ng’etich issued orders restraining Midlands Limited and Africa Agricultural Capital Fund from disposing of, selling, or dispossessing Juanco Group Limited of its shares in the multi-million-shilling venture for processing potatoes, carrots, cabbages, and peas.
“An order is issued prohibiting the respondents, their agents, and employees from dealing with or interfering in any manner whatsoever with the plaintiff's shares in the business venture pending hearing and determination of the suit,” ruled Justice Ng’etich.
Juanco Group, through lawyer Gad Gathu, filed the urgent suit, claiming Midlands Limited and Africa Agricultural Capital Fund wanted to dispossess it in the business deal despite the fact that it helped to secure a Sh100 million loan to facilitate the firm's setting up.
According to the lawyer, Juanco Group guaranteed Midlands Limited the loan under an agreement that it was to be allocated shares and derive benefits from the company.
He claimed both Midlands Limited and the financial lender have colluded to have another company, Primestar Holdings Limited, incorporated in the business so as to deny Juanco its share of the profits.
He asked the court to order Midlands Limited to call a meeting of all shareholders to discuss how to service the outstanding loan instead of seeking to dispossess Juanco of its 35 per cent stake.
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Potato processingMidlands Limited and Africa Agricultural Capital FundJuanco GroupPrimestar Holdings LimitedAgribusiness