[2009] KEHC 4247 (KLR)

[2009] KEHC 4247 (KLR)

The High Court held that the Capital Markets Authority had jurisdiction to inquire into and discipline the appellants for their conduct in relation to the NSSF transaction, as the transaction was intended to be a capital markets transaction involving a treasury bond. The Authority's powers under sections 11(3)(h),...

Source-derived case information.

Citation
[2009] KEHC 4247 (KLR)
Parties
Appellant: Shah Munge & Partners Limited; Appellant: Franklin Kariuki Kirigia; Appellant: Arthur Runyenje Namu; Appellant: John Paul Munge; Appellant: Paul Anthony Spence; Respondent: The Capital Markets Authority
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
14 May 2009
Case Number
Civil Appeal 913 of 2003
Procedural Posture
Civil Appeal / Second Appeal From the Capital Markets Tribunal to the High Court
Outcome
Appeals of the 1st, 2nd, 3rd, and 4th appellants dismissed with costs; appeal of the 5th appellant allowed as to sanctions, with each party to bear own costs.
Legal Topics
Capital Markets Regulation, Disciplinary Proceedings, Natural Justice, Directors Liability, Delegation of Powers, Procedural Fairness
Source Language
english
Commercial and Corporate Administrative Law Civil Procedure Capital Markets Regulation Disciplinary Proceedings Natural Justice Directors Liability Delegation of Powers +1 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Shah Munge & Partners Limited

Appellant

Franklin Kariuki Kirigia

Appellant

Arthur Runyenje Namu

Appellant

John Paul Munge

Appellant

Paul Anthony Spence

Appellant

The Capital Markets Authority

Respondent

Procedural Posture

Civil Appeal / Second Appeal From the Capital Markets Tribunal to the High Court

Legal Issues

  1. 1 Whether the Capital Markets Authority had jurisdiction to discipline the appellants for the transaction with NSSF.
  2. 2 Whether the disciplinary procedures adopted by the Authority and Tribunal complied with the Act and rules of natural justice.
  3. 3 Whether the Authority could lawfully delegate its disciplinary functions to a sub-committee.

Ratio Decidendi

The High Court held that the Capital Markets Authority had jurisdiction to inquire into and discipline the appellants for their conduct in relation to the NSSF transaction, as the transaction was intended to be a capital markets transaction involving a treasury bond. The Authority's powers under sections 11(3)(h), 25, and 26 of the Act are complementary, and the Authority may act following an inquiry under section 11(3)(h) without waiting for license renewal. The Authority was entitled to delegate its functions to a committee under section 14(1), and the procedures adopted, including the opportunity given to the appellants to respond to the allegations, satisfied the requirements of...

Court Disposition

Appeals of the 1st, 2nd, 3rd, and 4th appellants dismissed with costs; appeal of the 5th appellant allowed as to sanctions, with each party to bear own costs.

Orders

  • The appeals of Shah Munge & Partners Limited, Franklin Kariuki Kirigia, Arthur Runyenje Namu, and John Paul Munge are dismissed in their entirety with costs to the respondent.
  • The sanctions imposed by the Tribunal on the 1st, 2nd, 3rd, and 4th appellants are confirmed.