Zzimwe family files for letters to estate

Jun 04, 2010

THE family of the late tycoon Andrew Kasagga aka Zzimwe on Wednesday applied for letters of administration from the Administrator General to enable them access the bank accounts of his company.

By Adante Okanya

THE family of the late tycoon Andrew Kasagga aka Zzimwe on Wednesday applied for letters of administration from the Administrator General to enable them access the bank accounts of his company.

On Monday, the Commercial Court rejected the family’s application to compel the Registrar General to endorse new signatories so that the company could “run smoothly and meet contractual obligations”.

The family cited a sh5.5b loan from Tropical Bank, which the company got on March 29 and a sh6.2b contract to maintain city roads, signed in July last year.

Prior to his death, Kassaga and his son were the signatories to the company accounts in United Bank of Africa, Tropical and Crane banks.

Following Kassaga’s death, the board of directors of Zzimwe Enterprises Hardware and Construction appointed the late’s son Paul Kasagga, daughter Catherine Nakimbuggwe and wife Josephine Kasagga as the new signatories on May 4.

However, the registrar, Bisereko Kyomuhendo rejected the resolution and advised the family to get letters of administration for their sh20b father’s estate.

In the court ruling, Justice Stella Arach-Amoko concurred with the registrar, saying the letters of administration were crucial since the late was majority shareholder, with 4.9 million shares.

Dennis Sembuya, a lawyer at Kavuma Kabenge and Company Advocates, representing the Zzimwes described the ruling as unprecedented.

He said a company cannot run after letters of administration, since it is governed under the Companies Act. He added that a ‘Petition for Letters’ had been sent to the Administrator General and expect a reply called a ‘Notice of no Objection’.

Sembuya explained that the Notice of no Objection, which contains the names of those seeking these letters, would be attached to the petition presented to court.

Meanwhile, although the contents of the late Zzimwe’s will are yet to be made public, the lawyers say it outlines what each family member is inheriting.

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