The High Court has temporarily suspended the annual general meeting for Utumishi Investment Limited, a company owned by more than 16,000 shareholders, mostly retired and serving police officers.
Justice Josephine Mong’are suspended the AGM pending the hearing of an application by four members, who claim that the callers of the meeting are in office illegally and cannot, therefore, conduct the affairs of the company.
The four mem bers led by George Musamali further want the officials to account for the properties belonging to the company, which they said have exchanged hands without the knowledge and consent of the members.
“That being in the office illegally, they cannot validly conduct any business of the 2nd respondent purporting to be doing it for members who have rejected them and are demanding accountability before anything else is done,” the petitioners say.
Mr Musamali, David Ndiema, Peter Hongo and Moses Epoloto had sought court orders to block the AGM to be held on Tuesday, November 19, pending the determination of the case.
“In the interim, orders in terms of prayer 2 are granted,” said the Judge in a ruling delivered on November 15.
Mr Musamali said in an affidavit that allowing the meeting to proceed would be tantamount to giving the officials an opportunity to sanitise alleged illegal acts without being investigated on their past conduct, yet the matter was in court.
“Our biggest fear and suspicion are that the election is likely to be used to change the face of 2nd respondent (Utumishi Investment) and come up with a façade to perpetuate their stay in the office and continue carrying out the same illegal activities,” he said.
He pointed out that during the previous AGM, they were allegedly locked out and the meeting was held in secrecy for unexplained reasons as no notice was issued as required by the law.
“It is our prayer that the 2nd respondent officials be investigated first while in office to avoid mixing issues,” he said.
Mr Musamali claimed that it was the intention of the officials to hold an election without the participation of the majority members so as to make them have control full control of the contested property because a “good number of the members have retired and their shares sold or acquired by the very officials”.
They have named Ruaraka Housing Estate Ltd, and Kenya National Police Sacco as respondents in the petition.
