Court throws out application seeking to wind up Tatu City
By By Lucianne Limo | January 19th 2013
By Lucianne Limo
Investors in the multi-billion shilling real estate housing project, Tatu City, got a major reprieve when the court threw out an application seeking to wind up the company.
Commercial Court Judge Justice Daniel Musinga, refused to allow the petitions filed by Tatu City minority shareholders to have the company wound up or they be bought out by the majority shareholders.
In his ruling, Justice Musinga agreed with the Company that the minority shareholders had acted unreasonably in petitioning the Court to wind up the company when there was an alternative remedy available to them, through sale of their shareholding to the other shareholders.
The ambitious development plan seeks to construct a city that can accommodate 62,000 residents in a well-planned environment, besides putting up office blocks, shopping malls and industrial parks, all estimated to cost Sh200 billion.
“The petitioners are acting unreasonably by seeking to have Tatu City wound up so as to force a buy out on their terms even where the court has no jurisdiction to make orders regarding foreign registered companies,” he ruled. He ruled that they held only one share each in the company, which should be valued and paid for by the firm.
“The value of the petitioners’ shares in the company shall be determined by a reputable firm of accountants to be agreed upon by parties, failure to which, a firm shall be appointed by the chairman of the Certified Public Accounts of Kenya,” said Musinga.
In the case, the petitioner, Waguthu Holdings Limited, through its shareholders Stephen Mbugua and Rosemary Wanja, are seeking the project in Kiambu County wound up.
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