Sanyu Africa Research Institute (SAFRI) NGO v Sanyu Africa Research Institute (SAFRI) Limited (Company Complaint 9524 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Registrar of Companies dismissed the complaint on the ground that the complainant, being an NGO registered only with the National Bureau of NGOs and not appearing on the company register, lacked locus standi to challenge the respondent's registration under Section 40(2) of the Companies Act 2012. The Registrar held that disputes concerning similarity of company names can only be entertained where both parties are duly incorporated and appear on the companies register. Further, the Registrar held that allegations of fraud and bad faith require a full trial and cannot be determined by the Registrar, who lacks jurisdiction to conduct such proceedings.
Outcome
Complaint dismissed for lack of locus standi; complainant directed to seek appropriate legal redress in courts of law
Facts
The complainant is an NGO registered in 2013 with the National Bureau of NGOs under the name Sanyu Africa Research Institute (SAFRI). In August 2022, the complainant discovered that a company with the same name had been incorporated at URSB. The complainant alleged that Dr. James Ditai, one of the founding members of the NGO and its Executive Director, acted in bad faith by incorporating the respondent company in December 2021 without including the other founding members and instead bringing in three new members. The complainant sought cancellation of the respondent's registration or rectification of the register to replace the three new members with the original founding members. On 15 December 2021, Dr. Ditai reserved the name with URSB, paid the required fees, and submitted the necessary documentation. The respondent was incorporated on 22 December 2021 as a company limited by guarantee. The respondent contended that it followed all required procedures and that the complainant, not being on the company register, lacked standing to challenge the registration.
Issues
- Whether the respondent's name is confusingly similar to that of the complainant and constitutes passing off of the complainant's name.
- Whether the complainant has locus standi to bring a complaint before the Registrar of Companies under the Companies Act 2012.
- Whether the Registrar of Companies has jurisdiction to determine allegations of fraud and bad faith in company registration.
Orders
- Complaint dismissed.
- No order as to costs.
- Suspension of company filings on the respondent's file lifted.
Rules and key headnotes
Legislation cited (10)
- Companies Act 2012 s.22
- Companies Act 2012 s.36
- Companies Act 2012 s.37
- Companies Act 2012 s.40(2)
- Companies (Powers of the Registrar Regulations) 2016 reg.3(i)
- Non-Governmental Organizations Registration Act Cap.113 s.2(3)
- NGO Act 2016
- Civil Procedure Act s.98
- Judicature Act s.33
- Civil Procedure Rules O.6 r.2
Cases cited (3)
- Freddrick Zabwe v Orient Bank & Others (Supreme Court Civil Appeal No. 04 of 2006)
- Kampala Bottlers Ltd v Damanico (Supreme Court Civil Appeal No. 22 of 1992)
- Pentecostal Assemblies of God Limited v Pentecostal Assemblies of God Lira Limited (High Court Civil Suit No. 97 of 2015)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.