[2016] KEHC 6206 (KLR)
The court held that before confirming the proposed distribution of part of the estate to Uviluni Investments Limited, further clarification is required. Specifically, the beneficiaries must indicate their concurrence to the legal position that the company, as a separate legal entity and not a direct beneficiary,...
Source-derived case information.
- Citation
- [2016] KEHC 6206 (KLR)
- Parties
- Applicant: Mrs. Nyaata for Miss Ngatia for the Applicants; Respondent: No appearance for the Respondent
- Court
- High Court
- Court Station
- High Court at Machakos
- Jurisdiction
- Kenya
- Case Number
- Succession Cause 202 of 2014
- Procedural Posture
- Succession Cause / Ruling on Application for Confirmation of Grant
- Outcome
- Confirmation of grant deferred pending further affidavit.
- Judges
- EM Muriithi
- Legal Topics
- Confirmation of Grant, Estate Distribution, Company Shareholding, Stamp Duty, Minor Beneficiaries
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mrs. Nyaata for Miss Ngatia for the Applicants
Applicant
No appearance for the Respondent
Respondent
Procedural Posture
Succession Cause / Ruling on Application for Confirmation of Grant
Legal Issues
- 1 Whether the proposed distribution of part of the estate to Uviluni Investments Limited is proper given its status as a separate legal entity.
- 2 Whether the widow, Ruth Wayua Ngutu, should hold her shares on behalf of herself and the three minor beneficiaries as proposed.
- 3 Whether stamp duty and necessary consents for transfer of agricultural land must be addressed in the distribution.
Ratio Decidendi
The court held that before confirming the proposed distribution of part of the estate to Uviluni Investments Limited, further clarification is required. Specifically, the beneficiaries must indicate their concurrence to the legal position that the company, as a separate legal entity and not a direct beneficiary, will be liable for stamp duty and any necessary consents for transfer of agricultural land. Additionally, it must be clarified that the widow, Ruth Wayua Ngutu, who holds 36 shares in the company, does so on her own behalf and on behalf of the three minor beneficiaries, as proposed in the consent to the mode of distribution. The court thus deferred confirmation pending the filing...
Court Disposition
Confirmation of grant deferred pending further affidavit.
Orders
- Beneficiaries to file a further affidavit indicating concurrence to the legal position regarding company shareholding and stamp duty liability.
- Clarification to be provided that the widow holds her shares on behalf of herself and the three minor beneficiaries as proposed in the consent.
Full Case Text
Judgment text and source record
13 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT MACHAKOS
SUCCESSION CAUSE NO. 202 OF 2014
IN THE MATTER OF THE ESTATE OF SAMUEL KATUMO NGUTU (DECEASED)
RULING
Upon an application for confirmation of Grant dated 16th June 2015 and upon considering the proposed distribution of part of the Estate to M/S Uviluni Investments Limited where the beneficiaries are said to be shareholders, the Court considers that a further affidavit is necessary, for the beneficiaries, firstly, to indicate their concurrence to the position by operation of the law that as a separate legal entity the said company, not being a beneficiary will have to pay stamp duty for the transaction (and any necessary for consent for transfer of agricultural land), and secondly, to clarify that the widow, Ruth Wayua Ngutu who holds 36 shares in the Company against the other beneficiaries shares of 9 each, shall hold her 36 shares on her behalf and on behalf of the three minors, Venus, Reuben and Dan, as proposed in paragraphs 3, 4, and 5 of the Consent to the Mode of Distribution of the Estate filed on 17/6/2015.
DATED AND DELIVERED THIS 16TH DAY OF MARCH 2016.
EDWARD M. MURIITHI
JUDGE
In the presence of: -
Mrs. Nyaata for Miss Ngatia for the Applicants
No appearance for the Respondent
Ms. Doreen - Court Assistant.