Government in court battle over Bill Lay Portland appointment
13 February 2014, 14:42
Nairobi - The
government has accused the East African Portland Cement Company (EAPCC) of following
a wrong procedure in taking its directors’ dispute to court.
government through lawyer Kamau Karori said yesterday that the director’s
battle was only approved through a voting decision of a minimal number of three
members of the board instead of the required four.
Karori also said during the hearing of the case which the Cement Company has
sued the Capital Markets Authority (CMA) that the Company’s Managing Director
Kefa Tande has been excluded in the court documents of the suit.
resolution by the board was passed by only three board members out of
seven although at this point six are in office, the resolution required to be
passed by at least four directors, it was unprocedural to start these court
proceedings,” said Mr Karori.
also claimed that the appointment of Mr Didier Tresarrieu as a director had
been suspended by December 18 last year.
however claimed that four directors passed the decision and that legal court
documents have been sworn by the Board’s Chair Mark Kitaanyu Ole Karbolo and
the Company Secretary John Maonga.
argues that the dispute landed in court following a resolution made last
December instructing the start of the court proceedings through an email
circulated to all company directors.
was signed by four directors out of a majority of seven; we have submitted
resolution as signed by the four directors, what should be considered is who
signed the resolution and the number of directors made the approval by way of
receiving communication via email,” EAPCC’s lawyer said.
Cement Company defended Mr Tresarrieu saying that there has never been any
suspension with regards to his appointment and that he is duly registered by
the registrar of companies.
also claims that there was a letter written to CMA on December 20 last year,
clarifying on the issue.
to EAPCC CMA is a regulator who should act independently without supporting
Monday the government presented Mr William Bill Lay as the firm’s new chairman
hours before Lady Justice Mumbi Ngugi issued orders quashing President
Kenyatta’s gazette notice appointing Mr Lay and ruled that Mr Karbolo continue
as chairman of the EAPCC pending the determination of a case filed by the
outgoing chairman, Mr Mark Kitaanyu Ole Karbolo.
Principal Secretary Wilson Song while presenting Mr Lay as the new EAPCC
chairman at the company’s headquarters in Athi River said the decision to cut
short Mr Karbolo’s term was informed by the poor performance of Portland, which
is Kenya’s second biggest cement maker after Bamburi.
only authorized person to swear affidavits of this suit is Mr Kambi, any
document must have a sign a seal authorized or signed by him, the Company ought
not to be held responsible of this case” Mr Karori told court.
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