[2010] KEHC 47 (KLR)
The court found that the statutory manager had made progress but had not completed all necessary assignments, as detailed in the supporting affidavit. The court was satisfied that an extension was justified to allow the statutory manager to complete the remaining tasks, but limited the extension to three months...
Source-derived case information.
- Citation
- [2010] KEHC 47 (KLR)
- Parties
- Applicant: Capital Markets Authority; Respondent: Discount Securities Limited (Under Statutory Management)
- Court
- High Court
- Court Station
- High Court at Nairobi (Milimani Commercial Courts)
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application 69 of 2011
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Extension of Statutory Management
- Outcome
- application partially allowed
- Judges
- A. Ong’injo
- Legal Topics
- Statutory Management, Capital Markets Regulation, Extension of Management Period, Investor Protection
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Capital Markets Authority
Applicant
Discount Securities Limited (Under Statutory Management)
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Extension of Statutory Management
Legal Issues
- 1 Whether the period of statutory management of Discount Securities Limited should be extended under Section 33A(3) of the Capital Markets Act.
- 2 Whether all interested parties should be notified of the extension order.
Ratio Decidendi
The court found that the statutory manager had made progress but had not completed all necessary assignments, as detailed in the supporting affidavit. The court was satisfied that an extension was justified to allow the statutory manager to complete the remaining tasks, but limited the extension to three months rather than the six months sought. The court further directed that all interested parties, including creditors, debtors, and shareholders, be notified of the extension within 30 days via a daily newspaper. The decision was grounded in the statutory requirements of Section 33A(3) of the Capital Markets Act, balancing the need for regulatory oversight with the interests of stakeholders.
Court Disposition
application partially allowed
Orders
- The period of statutory management of Discount Securities Limited is extended for three months from the date of the ruling.
- All interested parties, including creditors, debtors, and shareholders, must be informed of the extension within 30 days through a daily newspaper.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
IN THE HIGH COURT OF KENYA AT NAIROBI
(MILIMANI COMMERCIAL & TAX DIVISION)
MISCELLANEOUS CIVIL APPLICATION NO. 69 OF 2011
IN THE MATTER OF:DISCOUNT SECURITIES LIMITED(Under Statutory Management)
AND
IN THE MATTER OF:AN APPLICATION UNDER SECTION 33A (3) OF THE CAPITAL MARKETS ACT, CHAPTER 485A LAWS OF KENYA.
IN THE MATTER OF:AN APPLICATION BY THE CAPITAL MARKETS AUTHORITY FOR AN EXTENSION OF THE
PERIOD OF APPOINTMENT OF THE STATUTORY MANAGER OF DISCOUNT SECURITIES LIMITED
R U L I N G
On 2nd February, 2011 the applicant filed an originating notice of motion application under Section 33A (3) of the Capital Markets Act, Cap 485A seeking the following orders.
1. The period of statutory management of Discount Securities Limited be extended for a further period of 6(six) months.
2. Directors be given as to which parties are to be notified of the order made herein pursuant to Section 33A(3) of the Capital Markets Act Cap 485A Laws of Kenya..
3. The costs of this application be provide for.
The application is supported by the supporting affidavit of Johnson Ole Tetia. In his affidavit he was able to explain the amount of work that he was able to complete within the last 6 months. The said accomplishments are clearly set out in paragraph 8 and 11 of his affidavit. Apart from the above, the deponent has also explained in paragraph 12 that there are some pending assignments which related to
(a)Sale of moveable assets
(b)Verification of accounts
(c)Investigation, tracing and recovery of assets
(d)Submission of an interim statutory management report.
(e)Establishment of an investor compensation fund.
After carefully considering the application together with the affidavit annexed herein, I hereby concede to the application by extending the period of statutory management for only a period of 3 months from today. This court is satisfied that if the statutory manager performs his duties diligently, and in an efficient manner he should be able to accomplish his tasks. Secondly, I hereby direct that all the interested parties who include the creditors, the debtors, and shareholders should be informed about this new development within the next 30 days through one of the daily newspapers.
Those are the orders of the court.
MUGA APONDI
JUDGE
Ruling read signed and delivered in open court in the presence of:
Mr. Murugara - Applicant’s Counsel
MUGA APONDI
JUDGE
10TH FEBRUARY, 2010