An artist’s impression of Tatu City. The project is running behind schedule because of shareholder wrangles. PHOTO | FILE
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The High Court has allowed Stephen Jennings and Frances Holliday access to the bank accounts while reinstating former Central Bank of Kenya boss Nahashon Nyagah and businessman Vimal Shah to the board of directors.
Justice Eric Ogola argued that the ruling was aimed at giving the warring shareholders a chance to call a truce and continue with the multi-billion shilling project.
The High Court has allowed two foreign shareholders of multi-billion shilling real estate development Tatu City access to bank accounts of the company, two weeks after they were barred from interfering with the project’s funds.
Justice Eric Ogola has allowed Stephen Jennings and Frances Holliday access to the bank accounts while reinstating former Central Bank of Kenya boss Nahashon Nyagah and businessman Vimal Shah to the board of directors.
The judge argued that the ruling was aimed at giving the warring shareholders a chance to call a truce and continue with the multi-billion shilling project.
Mr Nyagah and Mr Shah had filed the application claiming that the foreign shareholders had ousted them unlawfully and were planning to mismanage funds intended to complete the project.
“Having considered the history of the suit and application before the court, it is my view that the stakeholders in the Tatu City Ltd have no option, but to work together to realise the objectives of the two companies,” Justice Ogola ruled.
Mr Nyagah is expected to retain his position as chairman of the Tatu City Ltd board of directors, replacing Pius Mbugua Ngugi who had been appointed to the post by the Russian-based shareholders.
The judge also lifted a freeze on Tatu City Limited and Kofinaf Company Limited that were initially to remain blocked until an in-depth audit on the said accounts by PriceWaterHouse Coopers is submitted.
Justice Ogola argued that the move would enable the two firms to transact their business as usual until the audit report is submitted, and would help avoid stalling the Tatu City project.
“It is in the interest of that business and its continuity that a decision should be made. I would therefore be very reluctant, although that is not the position here, to issue orders based purely on technicalities since that will not help the parties to advance the interests of the companies,” he added.
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