Asian shareholders want United Assurance closed
Apr 21, 2005
TWO Asian returnees and shareholders of United Assurance Company (UACL) have petitioned the Commercial Court seeking orders to wind up the company.
By Hillary Nsambu
TWO Asian returnees and shareholders of United Assurance Company (UACL) have petitioned the Commercial Court seeking orders to wind up the company.
Kantibhai Maganibhai Patel and Kantibhai Manibhai Patel are accusing UACL officials of running the company for individual interests.
Through their lawyer, Alex Rezida, the Patels, argue that UACL officials had unjustifiably refused to reinstate their original 40% shares, which they re-possessed from the Government after their return in 1995.
They claim the company illegally took over their shares, which were vested in the Departed Asians’ Property Custodian Board (DAPCB) by operation of the law, when dictator Idi Amin expelled Asians from Uganda in 1972.
During Court hearing recently, Rezida told Justice Geoffrey Kiryabwire that despite the petitioners’ successful re-possession of their shares, UACL officials had reduced them from 40% to 1.5% without justifying how the reduction came about.
However, Court heard that in 1995, UACL officials claimed that due to structural changes in the shareholding and value of the shares, they were assessing the equivalent of the petitioners shares, but no shareholders meeting was held.
Rezida said the petitioners’ shares, as well as others in the company and its share capital, were allotted in contravention of the company’s memorandum and articles of association.
Court heard that the minister had nullified the resolutions in which the petitioners’ shares were taken away.
Rezida said the Registrar General warned the company that it was illegal to have allocated the petitioners’ shares without the concurrence of the DAPCB.
Rezida said the essence of the re-possession under the Expropriated Properties Act was to restore the former owners of shares to the position they were at the time of expulsion in 1972, if not compensated.
TWO Asian returnees and shareholders of United Assurance Company (UACL) have petitioned the Commercial Court seeking orders to wind up the company.
Kantibhai Maganibhai Patel and Kantibhai Manibhai Patel are accusing UACL officials of running the company for individual interests.
Through their lawyer, Alex Rezida, the Patels, argue that UACL officials had unjustifiably refused to reinstate their original 40% shares, which they re-possessed from the Government after their return in 1995.
They claim the company illegally took over their shares, which were vested in the Departed Asians’ Property Custodian Board (DAPCB) by operation of the law, when dictator Idi Amin expelled Asians from Uganda in 1972.
During Court hearing recently, Rezida told Justice Geoffrey Kiryabwire that despite the petitioners’ successful re-possession of their shares, UACL officials had reduced them from 40% to 1.5% without justifying how the reduction came about.
However, Court heard that in 1995, UACL officials claimed that due to structural changes in the shareholding and value of the shares, they were assessing the equivalent of the petitioners shares, but no shareholders meeting was held.
Rezida said the petitioners’ shares, as well as others in the company and its share capital, were allotted in contravention of the company’s memorandum and articles of association.
Court heard that the minister had nullified the resolutions in which the petitioners’ shares were taken away.
Rezida said the Registrar General warned the company that it was illegal to have allocated the petitioners’ shares without the concurrence of the DAPCB.
Rezida said the essence of the re-possession under the Expropriated Properties Act was to restore the former owners of shares to the position they were at the time of expulsion in 1972, if not compensated.