[2007] KEHC 2008 (KLR)

[2007] KEHC 2008 (KLR)

The court found that the Plaintiffs were suspended in accordance with Article 11 of the Chamber’s Articles of Association, which allows the Governing Council to suspend members for reasonable cause for up to three months, with a right of appeal under Article 12. The Plaintiffs were notified of their suspension and informed of their right to appeal, but chose not to exercise this right and instead approached the court. The court held that, since the Plaintiffs failed to exhaust the internal dispute resolution mechanisms provided by the Chamber’s Articles, they had no right to seek judicial intervention to revoke the suspension. Furthermore, the period of suspension had already lapsed by...

Citation
[2007] KEHC 2008 (KLR)
Parties
Plaintiff: Wilson Kimani Kang’ethe; Plaintiff: Kings Onyancha Maina; Plaintiff: Kenneth Baikogi Gitobu; Defendant: David Mburu Githere; Defendant: Titus Githui Ruhiu; Defendant: Kenya National Chambers of Commerce and Industry (KNCC & I)
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
2 February 2007
Case Number
Civil Case 1392 of 2005
Procedural Posture
Civil Case / Ruling on Interlocutory Injunction Application
Outcome
application dismissed with costs to the defendants
Legal Topics
Corporate Governance, Injunctive Relief, Internal Dispute Resolution, Company Articles, Membership Rights
Source Language
English
Commercial and Corporate Civil Procedure Corporate Governance Injunctive Relief Internal Dispute Resolution Company Articles Membership Rights

Case Brief

Summary, issues, holding and outcome

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Parties

Wilson Kimani Kang’ethe

Plaintiff

Kings Onyancha Maina

Plaintiff

Kenneth Baikogi Gitobu

Plaintiff

David Mburu Githere

Defendant

Titus Githui Ruhiu

Defendant

Kenya National Chambers of Commerce and Industry (KNCC & I)

Defendant

Procedural Posture

Civil Case / Ruling on Interlocutory Injunction Application

Legal Issues

  1. 1 Whether the suspension of the Plaintiffs from the Chamber was lawful under the Articles of Association and the Companies Act.
  2. 2 Whether the Plaintiffs are entitled to an injunction restraining the Defendants from suspending them from the Chamber.
  3. 3 Whether the Defendants were obligated to convene an Extra Ordinary General Meeting upon requisition by the Plaintiffs.

Ratio Decidendi

The court found that the Plaintiffs were suspended in accordance with Article 11 of the Chamber’s Articles of Association, which allows the Governing Council to suspend members for reasonable cause for up to three months, with a right of appeal under Article 12. The Plaintiffs were notified of their suspension and informed of their right to appeal, but chose not to exercise this right and instead approached the court. The court held that, since the Plaintiffs failed to exhaust the internal dispute resolution mechanisms provided by the Chamber’s Articles, they had no right to seek judicial intervention to revoke the suspension. Furthermore, the period of suspension had already lapsed by...

Court Disposition

application dismissed with costs to the defendants

Orders

  • The Chamber Summons filed on 17th November 2005 is dismissed with costs to the Defendants.