Muthoka loses reinstatement bid to CMC

By Standard Reporter

Attempts by former CMC chairman Peter Muthoka to be reinstated at the helm of the troubled company were thwarted on Thursday after the High Court dismissed his case.

Justice Daniel Musinga ruled that Mr Muthoka can only seek compensation because he was validly voted out.

The judge also absolved Capital Markets Authority (CMA) from blame saying it had powers to regulate the affairs of any publicly listed company.

In the ruling, Justice Musinga said Muthoka did not marshal enough votes to retain his former position and the only way he could return at the helm of CMC was by vote.

Muthoka, the largest shareholder in the troubled motor-firm and Mr John Kivai were toppled in a boardroom coup, which ushered in CMA’s three nominees.

The former chairman filed the suit seeking among other things, for CMA to be found in contempt of court proceedings for allegedly sanctioning his ouster.

The court declined to remove the new board members until the case was concluded. The fight for the control of the troubled motor dealer has triggered more than a dozen suits in both Commercial Court and Constitutional and Human Rights Division.

 forensic audit

Muthoka has also filed a petition before Justice Lenaola seeking to hold an extraordinary general meeting .

He has filed two other suits against the entire CMC board and another against PricewaterhouseCoopers and its director and head of regional forensic practice Martin Whitehead, seeking to block the publishing of its forensic audit report.

CMC has also sued the former chairman seeking compensation for the Sh1.5 billion he allegedly defrauded the company.  Muthoka has filed contempt proceedings against the CMC board. Ruling will be delivered on June 22.