Mwereri v Kenyana Another [2024] UGRSB 10
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Registrar dismissed the application as moot. The applicant sought rectification of the company register to remove documents reflecting a 2020 share transfer and his removal as director, alleging forgery and illegality. By the time of the hearing, the respondents had reinstated the applicant as a shareholder with his original 50 shares through a July 2023 resolution. The Registrar held that no live controversy remained, as the applicant had been restored to his original position, rendering the application academic and incapable of practical resolution.
Outcome
Application dismissed on grounds of mootness after applicant was reinstated as shareholder with 50 ordinary shares
Facts
Lukeman Mwereri and Joseline Kenyana were the original shareholders and directors of Jinja Kazi-Mingi Millers (U) Limited, each holding 50 shares at incorporation in February 2015. In December 2020, documents were filed transferring Mwereri's 50 shares to Buwagi Agro Traders Limited (a company solely owned by Kenyana) and removing Mwereri as director. Mwereri alleged these documents were forged and filed without his knowledge or participation. He filed this application in April 2024 seeking rectification of the register by striking off the 2020 documents. However, in July 2023, before the application was heard, the company passed a special resolution transferring the 50 shares back to Mwereri and reinstating him as director. By the time of the hearing in May 2024, the register reflected Mwereri and Kenyana as shareholders at 50:50, the same position as at incorporation.
Issues
- Whether the applicant lawfully transferred shares to Buwagi Agro Traders Limited.
- Whether the instant application is overtaken by events and therefore moot.
- Whether the application is entitled to the remedies sought.
Orders
- Application dismissed as moot.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (2)
- Companies Act 2012
- Companies (Power of Registrar) Regulations 2016 Regulation 8
Cases cited (4)
- Abdu Katuntu v MTN Uganda Limited and Others (High Court Civil Suit No. 248 of 2012)
- Julius Maganda v NRM (High Court Miscellaneous Cause No. 154 of 2010)
- Pine Pharmacy Ltd and 8 Others v National Drug Authority (Miscellaneous Application No. 0142 of 2016)
- Joseph Borowski v Attorney General of Canada (1989) 1 S.C.R
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.