KAKOZA v NYAGATARE

KAKOZA v NYAGATARE

A shareholder does not lose their status for failing to pay the full amount for shares as long as their name is in the company register; expulsion of a shareholder can only be done by the general meeting or as provided in the articles, not unilaterally by another shareholder.

Source-derived case information.

Citation
RLR V.3-2022
Parties
Appellant: Kakoza Nkuriza Charles; Respondent: Nyagatare Jean Luc
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
23 June 2017
Case Number
RCOMAA 00056/14/CS
Procedural Posture
Commercial Company Dispute / Supreme Court Appeal
Outcome
Appeal dismissed; lower court decision largely upheld with minor modification on legal fees.
Legal Topics
Shareholding Rights, Expulsion of Shareholders, Company Membership, Corporate Governance, Damages in Commercial Disputes
Company Law Commercial Law Shareholding Rights Expulsion of Shareholders Company Membership Corporate Governance Damages in Commercial Disputes

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Parties

Kakoza Nkuriza Charles

Appellant

Nyagatare Jean Luc

Respondent

Procedural Posture

Commercial Company Dispute / Supreme Court Appeal

  1. 1 Whether failure to fully pay for shares removes shareholder status
  2. 2 Whether a shareholder can unilaterally expel another shareholder
  3. 3 Entitlement to damages for wrongful expulsion

Ratio Decidendi

A shareholder does not lose their status for failing to pay the full amount for shares as long as their name is in the company register; expulsion of a shareholder can only be done by the general meeting or as provided in the articles, not unilaterally by another shareholder.

Court Disposition

Appeal dismissed; lower court decision largely upheld with minor modification on legal fees.

Orders

  • Kakoza Nkuriza Charles to pay Nyagatare Jean Luc 1,000,000 Frw in legal fees at this level, in addition to 1,500,000 Frw awarded by the High Commercial Court, totaling 2,500,000 Frw.
  • Kakoza Nkuriza Charles to bear the costs of the proceedings as incurred.