In the matter of Quad Biking Jinja Limited (Miscellaneous Cause 5 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that where a company has only one surviving shareholder who is also the administrator of the deceased majority shareholder's estate, and the company has no directors, it is impracticable to hold a meeting in the manner prescribed by the articles or the Companies Act. The court granted leave under section 138 of the Companies Act Cap 106 for the applicant to hold a single member meeting to appoint directors and enable the company to continue operations.
Outcome
Applicant granted leave to hold single member meeting and appoint directors
Facts
Quad Biking Jinja Limited had two shareholders: Robert Allun Davies holding 99 shares and serving as the sole director, and Mutesi Majorine holding 1 share and serving as company secretary. Robert Allun Davies died on 18 January 2024, leaving the company without any director. Mutesi Majorine was granted Letters of Administration to his estate on 19 September 2024. As the sole surviving shareholder holding only one share, the applicant attempted to appoint directors but the Uganda Registration Service Bureau rejected her single member resolution, directing her to obtain a court order. Article 24 of the company's Articles of Association requires a minimum quorum of two shareholders for meetings, making it impracticable to hold a meeting in the prescribed manner.
Issues
- Whether the applicant should be granted leave to hold a single member meeting appointing directors to the company
Orders
- Application allowed.
- Applicant granted leave to hold a single member meeting to appoint directors to Quad Biking Jinja Limited.
- No order as to costs.
Rules and key headnotes
Legislation cited (4)
Cases cited (1)
- In the Matter of Mutungo Executive Hotel Ltd (Company Cause No. 59 of 2023)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.