Laila Macharia, who doubles up as a member of the Capital Markets Tribunal as well as a non-executive director of investment company Centum, has opted out of the Rea Vipingo buyout case that is expected to kick off Monday.
The real estate and legal consultant has stepped down from the case to avoid a potential conflict of interest given that Centum is the complainant in the case seeking to quash an offer by two British brothers.
“Dr Macharia will be recusing herself from the panel that will hear our appeal before the Capital Markets Tribunal,” said Centum in a statement sent to the Business Daily.
Treasury secretary Henry Rotich in July appointed Dr Macharia and financial consultant Karen Kandie to be members of the CMA Tribunal.
The appointment of Jane Moraa Adogo as secretary to the tribunal completed the quorum needed to hear the Rea Vipingo case.
The membership of the tribunal hearing the case Monday consists of chairman Jinaro Kipkemoi Kibet and two members – George Karwenji and Ms Kandie.
“For the purposes of hearing and determining any cause or matter under this Act, the chairman and two members of the Tribunal shall form a quorum,” reads section 35A(14) of the Capital Markets Act.
Dr Macharia previously served as a member of the tribunal after she was given a three-year term in September 2010 by then deputy prime minister and minister for Finance Uhuru Kenyatta.
Centum is opposed to the buyout of Rea Vipingo by Richard and Jeremy Robinow, who already control 57.04 per cent of the sisal producer through Rea Trading Company.
The Robinows offered to buy out other Rea Vipingo shareholders at Sh70 per share plus a conditional bonus of up to Sh15 a-piece from future disposal of the company’s vast land.
However, Centum moved to the Capital Markets Tribunal seeking a declaration that the offer violates Kenya’s takeover rules.