[2020] KEHC 190 (KLR)

[2020] KEHC 190 (KLR)

The court determined that M/s Mwangi Ruita & Company, having served as the 4th defendant's auditor for 15 years and having been listed as a defense witness, could not be considered impartial or independent for the purposes of the audit required by the mediation settlement. The 3rd defendant withdrew his proposal, leaving M/s Kinyori & Associates as the only remaining candidate. Upon review of their credentials and testimonials, the court found M/s Kinyori & Associates to possess the necessary experience and expertise to conduct the audit. The overriding consideration was the need for an independent and impartial audit to give effect to the mediation settlement and ensure fairness among...

Citation
[2020] KEHC 190 (KLR)
Parties
Plaintiff: Hezekiah Wan’gombe Gichohi; Plaintiff: Hezy John Limited; Plaintiff: Allimex Limited; Plaintiff: HII Investors; Plaintiff: Caroline W Kamaru; Defendant: David N Muthoga; Defendant: Antony Wagura Ikiki; Defendant: Peter Gichohi Gitau; Defendant: Umoja Service Stations Limited
Court
High Court
Court Station
High Court at Nyeri
Jurisdiction
Kenya
Judgment Date
28 May 2020
Case Number
Civil Suit 13 of 2016
Procedural Posture
Civil Suit / Ruling on Appointment of Auditor Following Mediation Settlement
Outcome
application for appointment of auditor allowed; M/s Kinyori & Associates appointed as auditors
Judges
A Mshila
Legal Topics
Company Dissolution, Appointment of Auditor, Share Audit, Mediation Settlement
Source Language
English
Commercial and Corporate Company Dissolution Appointment of Auditor Share Audit Mediation Settlement

Case Brief

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Parties

Hezekiah Wan’gombe Gichohi

Plaintiff

Hezy John Limited

Plaintiff

Allimex Limited

Plaintiff

HII Investors

Plaintiff

Caroline W Kamaru

Plaintiff

David N Muthoga

Defendant

Antony Wagura Ikiki

Defendant

Peter Gichohi Gitau

Defendant

Umoja Service Stations Limited

Defendant

Procedural Posture

Civil Suit / Ruling on Appointment of Auditor Following Mediation Settlement

Legal Issues

  1. 1 Whether the court should appoint an independent auditor to audit the 4th defendant company as per the mediation settlement agreement.
  2. 2 Which audit firm is best suited to conduct an impartial and independent audit of the company’s shares.

Ratio Decidendi

The court determined that M/s Mwangi Ruita & Company, having served as the 4th defendant's auditor for 15 years and having been listed as a defense witness, could not be considered impartial or independent for the purposes of the audit required by the mediation settlement. The 3rd defendant withdrew his proposal, leaving M/s Kinyori & Associates as the only remaining candidate. Upon review of their credentials and testimonials, the court found M/s Kinyori & Associates to possess the necessary experience and expertise to conduct the audit. The overriding consideration was the need for an independent and impartial audit to give effect to the mediation settlement and ensure fairness among...

Court Disposition

application for appointment of auditor allowed; M/s Kinyori & Associates appointed as auditors

Orders

  • The firm of M/s Kinyori & Associates is appointed as auditors to conduct the audit of the 4th defendant company.
  • Parties are at liberty to apply for further directions.