Court asked to cancel share transfer deal

Published on 06/02/2009

By Standard Reporter

A creditor wants the court to cancel an alleged irregular transfer of 340,900 Equity Bank shares held by Invesco Assurance Company Ltd.

The creditor, Neptune Credit Management Ltd, claims a director at Invesco Assurance caused the transfer of the shares to a company to which he is linked, Tafi Enterprises. During the transfer, the director is alleged to have irregularly retained for himself 20 per cent of Invesco’s shareholding at Resolution East Africa Ltd.

The creditor claims the transfer took place soon after the creditor lodged a petition to wind up the insurer for inability to meet its financial obligations.

This action, according to the creditor, offends section 224 of the Companies Act.

Neptune Credit Management filed Winding Up Cause No 19 of 2007 after the insurer failed to clear money owed to it.

In a plaint filed 12 days ago through Ahmnednasir Abdikadir and Company Advocates, the creditor has named nine defendants. They are Invesco Assurance Co Ltd and, directors and shareholders Joseph Kyula, Joseph Gitau Mburu and Joseph Kariuki. Others directors and shareholders are Tafi Enterprises Ltd, Romichi company Ltd, Gale Court Holding Ltd, Nguyu Ngubuini and Linmerx Investments Ltd.

Linmerx Investments is a subsidiary of the insurer and owns 49 per cent shareholding in Resolution Health East Africa.

In the plaint, the creditor is seeking Sh80,175,00 judgement against the defendants individually and or as a team. He also wants the defendants to pay interest on the amount from the date of filing suit.

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