Zhang Jianming v Lin Yong and Another (Petition No. 42656 of 2025)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Registrar of Companies held that the petitioner failed to establish membership in the respondent company. Membership requires either subscription to the memorandum at incorporation or subsequent acquisition of shares with registration in the register of members. The petitioner's name did not appear on the register, he possessed no share certificate, and no return of allotment or company resolution evidenced any transfer or allotment of shares to him. The petition was dismissed for lack of locus standi under Section 243 of the Companies Act, which is available only to members.
Outcome
Petition dismissed for lack of locus standi; petitioner not established as member of the company
Facts
The petitioner, Zhang Jianming, claimed to hold 20% shareholding in Jenvisen Packing (U) Limited, the second respondent company. He alleged that in 2017, the company agreed to issue him equity in exchange for rental arrears owed to Lydia Home Textiles (U) Limited, where he was managing director. The petitioner produced an equity agreement, payment receipt, and shareholders' letter as evidence. He claimed that in 2019 and 2020, the first respondent and other shareholders fraudulently excluded him from company resolutions and converted the company to a single-member entity, vesting his shares in the first respondent. The respondents denied the petitioner was ever a member, asserting that his capital contribution was refunded. The company register did not list the petitioner as a past or present member. No share certificate, return of allotment, annual return, transfer form, or company resolution evidenced any allotment or transfer of shares to the petitioner.
Issues
- Whether the Petitioner is a member of Jenvisen Packing (U) Limited.
- What remedies, if any, are available to the parties.
Orders
- Petition dismissed.
- No order as to costs.
Rules and key headnotes
Legislation cited (4)
- Companies Act Cap. 106 s.243
- Companies Act Cap. 106 s.115(1)
- Companies Act Cap. 106 s.45
- Companies (Powers of the Registrar) Regulations SI No. 71 of 2016 Regulation 8
Cases cited (5)
- Olive Kigongo v Mosa Courts Apartments (High Court Company Cause No. 01 of 2015)
- Matthew Rukikaire v Incafex Limited (Supreme Court Civil Appeal No. 03 of 2015)
- Mawogola Farmers & Growers Ltd v Kayanja & Others [1971] EA 272
- National Westminster Bank Plc vs IRC 1995 A.C 111 at 126
- Lutaaya Vs. Gandesha, 1986 HCB 46
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.