[2018] KEHC 929 (KLR)
The court confirmed the reduction of share capital of EABL International Limited as resolved by its shareholders, having found that the company complied with all statutory requirements under the Companies Act, including proper notice to interested parties and absence of any objections. The reduction was therefore...
Source-derived case information.
- Citation
- [2018] KEHC 929 (KLR)
- Parties
- Applicant: EABL International Limited
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Application E91 of 2018
- Procedural Posture
- Miscellaneous Application / Judgment
- Outcome
- Application for confirmation of reduction of capital allowed.
- Judges
- MM Kasango
- Legal Topics
- Company Capital Reduction, Shareholder Resolution, Companies Act Procedure
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
EABL International Limited
Applicant
Procedural Posture
Miscellaneous Application / Judgment
Legal Issues
- 1 Whether the court should confirm the special resolution passed by the shareholders to reduce the share capital of EABL International Limited.
- 2 Whether due process, including notice to interested parties, was followed in the application for capital reduction.
Ratio Decidendi
The court confirmed the reduction of share capital of EABL International Limited as resolved by its shareholders, having found that the company complied with all statutory requirements under the Companies Act, including proper notice to interested parties and absence of any objections. The reduction was therefore approved as set out in the application, with no order as to costs.
Court Disposition
Application for confirmation of reduction of capital allowed.
Orders
- The reduction of the share capital of EABL International Limited is confirmed as per the special resolution dated 24th September 2018.
- There shall be no order as to costs.
Full Case Text
Judgment text and source record
26 paragraphs
REPUBIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
MILIMANI COMMERCIAL & TAX DIVISION
MISC. APPLICATION NO. E91 OF 2018
IN THE MATTER OF EABL INTERNATIONAL LIMITED
AND
IN THE MATTER OF THE COMPANIES ACT, NO. 17 OF 2015
AND
IN THE MATTER OF AN APPLICATION FOR CONFIRMATION OF REDUCTION OF THE CAPITAL OF EABL INTERNATIONAL LIMITED
JUDGMENT
1. Before me is an Originating Motion dated 2nd October 2018. It is brought by EABL International Limited (The Company). The Company seeks approval, of this court, of a special resolution passed by shareholders on 24th September 2018 of the company, by which the company resolved to reduce its share capital.
2. Prior to the hearing of the Originating Motion the court granted leave to the company to issue notice of the filing of this motion, by way of publication in a newspaper with nationwide circulation. That publication was made on the Nation Newspaper of 12th October 2018.
3. Since no objection has so far been raised to that reduction this court shall allow the reduction of the share capital as follows:
Current Amount Amount proposed to be cancelled and extinguished Amount after reduction of capital
Issued share capital Ksh.70,032,220 Ksh.70,022,220 Ksh.10,000
Share premium Ksh.2,335,350,000 Ksh.2,335,350,000 Nil
Total Ksh.2,405,382,220 Ksh.2,405,372,220 Ksh.10,000
4. There shall be no orders as to costs to the motion. Orders accordingly.
DATED, SIGNED and DELIVERED at NAIROBI this 29th day of November, 2018.
MARY KASANGO
JUDGE
Judgment read and delivered in open court in the presence of:
Court Assistant....................Sophie
........................................... for Applicant
MARY KASANGO
JUDGE