Sekyanzi 2 Others v Nkalubo 4 Others [2024] UGRSB 9
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Registrar held that the extraordinary general meeting of 25 September 2023 was not validly convened because the applicants, who were subscribers and members of the executive committee, were not given the required 21 days' notice. The resolutions passed at that meeting removing the applicants from the company, admitting new members, and changing office designations were therefore null and void. The register was rectified by expunging the special resolution and all subsequent documents filed in reliance on it.
Outcome
Application granted; company register rectified by expunging improperly filed resolutions; directorship and membership restored to prior state
Facts
Kawempe Division Veteran Vendors and Traders Association Limited was incorporated in 2006 with 16 members. By 2010, only 8 members remained. The applicants were founder members serving as Chairman, Vice Chairman, and General Secretary. On 25 September 2023, the respondents held a meeting and passed a special resolution removing the applicants from the company, admitting new members, and changing office designations. The resolution was filed with URSB on 17 October 2023. The applicants contended they were never notified of the meeting and that the respondents' actions were ultra vires. The applicants sought rectification of the register by expunging the resolution and all subsequent documents. The respondents did not file written submissions despite being directed to do so.
Issues
- Whether the meeting of 25 September 2023 was validly convened and held in accordance with the law and the resolutions passed pursuant to that meeting were lawful?
- What remedies are available to the parties?
Orders
- A special resolution dated 25 September 2023 and registered on 17 October 2023 is expunged from the register.
- A Form 20 filed on 17 October 2023 is expunged.
- A Special Resolution dated 18 November 2023 and registered on 5 December 2023 is expunged.
- A Special Resolution dated 2 February 2024 and registered on 9 February 2024 is expunged.
- A Form 20 registered on 9 February 2024 is expunged.
- The directorship and membership of the company be restored to the state it was.
- Each party to bear its own costs.
Rules and key headnotes
Legislation cited (13)
- Companies Act 2012 s.47(1)
- Companies Act 2012 s.139(1)
- Companies Act 2012 s.139(2)
- Companies Act 2012 s.139(4)
- Companies Act 2012 s.139(6)
- Companies Act 2012 s.140(1)
- Companies Act 2012 s.141
- Companies Act 2012 s.149(1)
- Companies Act 2012 s.150
- Companies Act 2012 s.153
- Companies (Powers of the Registrar) Regulations 2016 reg.3(i)
- Companies (Powers of the Registrar) Regulations 2016 reg.8
- Companies (Powers of the Registrar) Regulations 2016 reg.32
Cases cited (3)
- Mawanda & Anor v Kobit Uganda Limited (Civil Suit No. 350 of 2008)
- Fang Min v Uganda HuiNeng Mining Ltd [2019] UGCommC 29
- Fang Min v Uganda Hui Neng Mining Limited & 5 Others (HCCS No. 318 of 2005)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.