KENYA SEED COMPANY SHAREHOLDER LOSE BID TO PROSECUTE KSC AND ADC BOARD MEMBERS.

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BY SAM ALFAN.

A shareholder of Kenya Seed Company (KSC) has suffered a major blow in his attempt to privately prosecute the board members of KSC and Agricultural Development Corporation (ADC).

This is after High court Anti-Corruption Division dismissed petition filed by Peter Chemuigut seeking to prosecute the board members over claims of misappropriation of funds and the management of the company.

In her decision, Justice Esther Maina said that the matters raised by Chemuigut should have been filed before the commercial court as they fall under the Companies Act.

“It is upheld with the result that the petitioner’s application and petition are struck out”, ruled Judge Maina.

In her 17 page ruling, the judge added that all the allegations raised in the petition pertain to the internal affairs and running of a company which ought to be adjudicated under the Companies Act whose jurisdiction is the preserve of the commercial and tax division of the high court but not this court.

The judge found that the preliminary objection of the Fred Oloibe (acting Managing director), Mohammed Bulle, Eliud Mathu and Edna Atisa were merited.

Chemuigut moved to court arguing that Agriculture CS Peter Munya and KSC board had frustrated efforts of shareholders to hold an annual general meeting.

Chemuigut urged the court to issue permanent injunction restraining Agricultural Development Corporation (ADC) agents, servants or any other persons acting through them or using their name to conduct affairs of Kenya Seed Company ltd in an oppressive manner or in a manner prejudicial to the private shareholders of the seed company.

In his petition, he also urged the court to declare that the decision by board of Kenya Seed Company ltd to award tenders to Manpower Services ltd was irregular and subsequent contracts were void and therefore should conduct afresh tender of hiring the next managing director of Kenya Seed Company.

He also sought the court to declare decision by the board to appoint lawyer Kimamo Kuria was irregular and subsequent contracts were null and void.

He further sought the court to declare that Fred Oloibe, Mohammed Bulle and CS Peter Munya conspired to defraud contrary to section 327 of the Criminal Penal Code (CPC) on the purchase of Emitiat form in Endebes among other orders.

He further faulted the CS for the appointment of Fred Oloibe as the acting managing director of KSC, saying the appointment was made when the board was not fully constituted and no due diligence was not done because of integrity issues surrounding Oloibe.

He also claimed that the board members had conspired to defraud KSC by purchasing a 500 acre farm in Endebess, Trans Nzoia county for about Sh200 million.

The shareholder said the decision was not approved by the shareholders and that the company lost seed worth Sh100 million at its stores in Narok and nearly Sh7 million in its seed shop in Kitale.

Acting Managing director Oloibe opposed the application and asked the court to dismiss the case, arguing that they were merely agents of the ministry and had no personal interest besides being acting MD and board member.

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