Sanyu Africa Research Institute (SAFRI) v Sanyu Africa Research Institute (SAFRI) Limited (Petition 9524 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Registrar has jurisdiction to hear and determine matters concerning similarity of company names under sections 37–40 of the Companies Act and Regulation 17 of the Companies (General) Regulations 2016. However, issues of legitimacy and composition of the parties are before the High Court in Miscellaneous Cause No. 348 of 2022, and the Registrar has no jurisdiction to pronounce on those matters per Regulation 4(1) of the Companies (Powers of the Registrar) Regulations 2016. The preliminary objection was partly upheld.
Outcome
Preliminary objection partly upheld — Registrar has jurisdiction over name similarity but not over legitimacy and composition issues pending before High Court; respondent's company activities remain suspended pending full hearing
Facts
The petitioner, an NGO registered with the National Bureau of NGOs on 20 September 2013, complained that the respondent company was registered on 22 December 2021 using a similar name by one of its former members together with other persons not part of the original NGO. The Executive Director of the National Bureau of NGOs ruled on 3 August 2022 in favour of the petitioner, legitimising their constitution and directing URSB to investigate the incorporation. The respondent appealed that decision to Mbale High Court in Miscellaneous Cause No. 348 of 2022, seeking declarations that the NGO Bureau's proceedings and directives were illegal and that the incorporation pronouncement was irrational. On 25 August 2022, the High Court issued an interim order forbidding interference with the respondent's board of directors. The respondent raised a preliminary objection that the Registrar lacked jurisdiction to hear the petition because the matters were before the High Court.
Issues
- Whether the Registrar of Companies has jurisdiction to hear the petition given that related matters are pending before the High Court in Miscellaneous Cause No. 348 of 2022.
- Whether the Registrar has jurisdiction to determine issues concerning similarity of company names.
- Whether the Registrar has jurisdiction to determine the legitimacy and composition of the parties.
Orders
- The Registrar has jurisdiction to hear and determine a matter concerning similarity of name.
- The issues of legitimacy and composition of the parties are before court and the Registrar has no jurisdiction to pronounce on the same.
- The company activities of the respondent remain suspended until the matter is fully heard and disposed of on its merits.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (10)
- Companies Act s.37
- Companies Act s.38
- Companies Act s.39
- Companies Act s.40
- Companies (General) Regulations 2016 reg.17
- Companies (Powers of the Registrar) Regulations 2016 reg.3(e)
- Companies (Powers of the Registrar) Regulations 2016 reg.4
- Companies (Powers of the Registrar) Regulations 2016 reg.4(1)
- Companies (Powers of the Registrar) Regulations 2016 reg.8(1)
- Non-Governmental Organizations Act 2016
Cases cited (1)
- Desai v Warsama [1967] 1 EA 31
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.