[2021] KEELRC 2064 (KLR)
The court found that the respondent company was deliberately shut down to defeat the judgment of the court. This constituted an abuse of the corporate structure, justifying the lifting of the corporate veil. The directors were therefore held personally liable for the decretal sum and the costs of the application, as...
Source-derived case information.
- Citation
- [2021] KEELRC 2064 (KLR)
- Parties
- Applicant: Elly Barasa Ochieng; Respondent: Gallant Security Services Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 911 of 2011
- Procedural Posture
- Employment Cause / Ruling on Application to Lift Corporate Veil
- Outcome
- application granted
- Judges
- AN Makau
- Legal Topics
- Lifting Corporate Veil, Director Liability, Enforcement of Judgment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Elly Barasa Ochieng
Applicant
Gallant Security Services Limited
Respondent
Procedural Posture
Employment Cause / Ruling on Application to Lift Corporate Veil
Legal Issues
- 1 Whether the corporate veil should be lifted to hold the directors personally liable for the decretal sum and costs.
- 2 Whether the respondent company was deliberately shut down to defeat the judgment of the court.
Ratio Decidendi
The court found that the respondent company was deliberately shut down to defeat the judgment of the court. This constituted an abuse of the corporate structure, justifying the lifting of the corporate veil. The directors were therefore held personally liable for the decretal sum and the costs of the application, as the interests of justice required that the judgment not be frustrated by the misuse of the company form.
Court Disposition
application granted
Orders
- The corporate veil is lifted.
- The directors of the respondent company are personally liable for payment of the decretal sum in the judgment and the costs of this application.
Full Case Text
Judgment text and source record
14 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT & LABOUR RELATIONS
COURT OF KENYA AT NAIROBI
CAUSE NO. 911 OF 2011
ELLY BARASA OCHIENG..................................................CLAIMANT
VERSUS
GALLANT SECURITY SERVICES LIMITED............RESPONDENT
RULING
1. Application for lifting of corporate veil is merited. The grounds advanced in the Motion as well as the Affidavit show there was a deliberate effort to subject the cause of justice by shutting down the company to defeat the judgment of Court.
2. The Motion is thus granted and the Directors of the Company are liable personally for payment of the decretal sum in the judgement as well as the costs of this application.
It is so ordered.
Dated and delivered at Nairobi this 24th day of February 2021
Nzioki wa Makau
JUDGE