COURT EXTENDS IMPERIAL BANK RECEIVERSHIP.

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High Court has extended the receivership Imperial Bank Limited for a further period of 90 days.

 

Justice Odunga on Friday allowed the request by shareholders for more time for the stakeholders to dialogue on reviving the Bank.
KDIC lawyer Philip Murgor said the receiver will use the 90 days period to engage depositors about their payments.
 Central Bank of Kenya statement few minutes after high court extended Imperial Bank receivership for 90days.
At the same time lawyers acting for CBK and KIDC are seeking the extension of the board members from contempt proceedings initiated by the shareholders of the troubled financial institution.
They claim the CBK Governors with board of directors have disobeyed Justice Odunga ruling made on November 4 , last year.

Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) applied to set aside summons requiring their officials to appear in court over alleged contempt of court.

The two through lawyer Philip Murgor termed the notice dated February 21, 2017 unconstitutional to the extent that it was issued in violation of Article 50 of the constitution.

CBK boss Patrick Njoroge and  receiver manager Mahmoud Mohammed had been summoned by Judge George Odunga on February 21 to appear in court to show cause why contempt of court proceedings should not be commenced against them.

The two officials claim that their rights to be presumed innocent until the contrary is proved has been violated. “The said notice requiring me to appear personally before the court violates my right to choose, and be represented by an advocate before the court,” said Mohamud in court documents.

Murgor added that it is important that the court be pleased to declare the Notice to Show Cause dated February 21, 2017 as unconstitutional to the extent that it was issued in violation of Article 50 of the constitution of Kenya.

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