Judge dismisses misappropriation case against Kenya Seed Company – Business Daily

The Kenya Seed Company Eldoret depot. FILE PHOTO | NMG
A Judge has dismissed a petition filed by a shareholder of Kenya Seed Company (KSC) over claims of misappropriation of funds and the management of the company.
Justice Esther Maina of the anti-corruption division of the High Court dismissed the case filed by Peter Chemuigut saying the matters he has raised should have been filed before the commercial court as they fall under the Companies Act. 
The Judge further declined a prayer to be allowed to privately prosecute the board members of KSC and Agricultural Development Corporation (ADC) for lack of jurisdiction.
“In my view, all the above allegations 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.”
Mr Chemuigut had sought moved to court arguing that Agriculture CS Peter Munya and KSC board had frustrated efforts of shareholders to hold an annual general meeting. 
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 Mr Oloibe. 
He also claimed that the board members had conspired to defraud KSC by purchasing 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.
Mr 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.
“As earlier highlighted, the mandate of this court as set out in the gazette Notice is strictly to deal with corruption and economic crimes but does not extend to matters that strictly fall under the Companies Act,” the Judge said. 
The Judge said the prayer to privately prosecute the board members lies before a magistrate court and not the High Court. 

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By Kwetu Buzz

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