[2003] KEHC 934 (KLR)

[2003] KEHC 934 (KLR)

The court found that while the applicant had failed to pay his membership subscriptions, the termination of his membership was not carried out in accordance with the mandatory procedures set out in the Articles of Association. Specifically, there was no evidence that the Membership Committee or the Governing Council deliberated or made the decision to terminate the applicant’s membership, as required by Articles 8, 9, and 10. The court held that even if the substantive grounds for termination existed, procedural fairness and adherence to the prescribed process were essential. As such, the applicant established a prima facie case that the termination was procedurally flawed, warranting the...

Citation
[2003] KEHC 934 (KLR)
Parties
Applicant: Zakayo Kagombe Nderu; Respondent: Kenya National Chamber of Commerce & Industry; Respondent: Najib Balala
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Judgment Date
19 March 2003
Case Number
Civil Case 26 of 2003
Procedural Posture
Miscellaneous Application / Ruling on Interlocutory Application for Mandatory and Prohibitory Injunctions
Outcome
Application partly allowed.
Legal Topics
Mandatory Injunctions, Membership Termination, Corporate Governance, Procedural Fairness
Source Language
English
Civil Procedure Commercial and Corporate Mandatory Injunctions Membership Termination Corporate Governance Procedural Fairness

Case Brief

Summary, issues, holding and outcome

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Parties

Zakayo Kagombe Nderu

Applicant

Kenya National Chamber of Commerce & Industry

Respondent

Najib Balala

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Interlocutory Application for Mandatory and Prohibitory Injunctions

Legal Issues

  1. 1 Whether the termination of the applicant's membership was procedurally and lawfully carried out.
  2. 2 Whether the applicant is entitled to a mandatory injunction reinstating his membership pending the hearing of the suit.
  3. 3 Whether the applicant is entitled to an injunction restraining the first respondent from demanding revised annual subscription fees.

Ratio Decidendi

The court found that while the applicant had failed to pay his membership subscriptions, the termination of his membership was not carried out in accordance with the mandatory procedures set out in the Articles of Association. Specifically, there was no evidence that the Membership Committee or the Governing Council deliberated or made the decision to terminate the applicant’s membership, as required by Articles 8, 9, and 10. The court held that even if the substantive grounds for termination existed, procedural fairness and adherence to the prescribed process were essential. As such, the applicant established a prima facie case that the termination was procedurally flawed, warranting the...

Court Disposition

Application partly allowed.

Orders

  • Prayer 3 for a mandatory injunction reinstating the applicant's membership is granted.
  • Prayers 4 and 5 are dismissed.