Shareholders of Kiru Tea Factory Company have kicked out the managing director of listed firm Sasini Tea #ticker:SASN from their board for conflict of interest amid opposition from the Kenya Tea Development Authority (KTDA).
Stephen Githiga, the Group MD of Sasini, was ousted following an extra ordinary meeting on Monday that was declared unprocedural by the KTDA.
The High Court In January rejected Mr Githiga’s plea to stop Kiru Tea Factory Company from axing him and ruled that director fights should be settled in the boardroom, setting the stage for his ejection.
Shareholders accused the KTDA, which manages the factory, of taking sides in the dispute after circulating notices stopping the extra ordinary meeting and locking famers out of the factory premises.
“There will be no special general meeting of Kiru Tea Factory or any other meeting in respect of the company” said Kennedy Omanga, KTDA company secretary ahead of the Monday meeting.
Kiru shareholders said Mr Githiga’s position in the factory become invalid after he was hired by Sasini as Group managing director in January last year, arguing that he cannot sit on the boards of two rival firms that deal in tea.
“Pursuant to section 139 (1) of the Companies Act, 2015, Stephen Maina Githaiga and be is hereby removed as a director of Kiru Tea Factory Company Limited, before the end of his term in office, having been found in breach of Section 143 (1), section 146 (1) and Section 147 (1) of the companies Act, 2015,” reads the shareholder meeting notice dated February 2.