JUSTINE RANGE

JUSTINE RANGE

The Applicants, as members of the company, satisfied the statutory requirements under section 234(2) of the Companies Act by issuing proper notice to directors, acting in good faith, and demonstrating that the action is in the company's interest due to irreconcilable disputes and inability of the board to act. Leave to institute and prosecute derivative action is therefore granted.

Citation
JUSTINE RANGE
Parties
Applicant: Justine Marwa Range; Applicant: David Range Boaz; Respondent: Range Boaz Range; Interested Party: Jura Tanzania Limited
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
1 January 2002
Procedural Posture
Misc. Civil Cause (derivative Action Leave Application) / Ruling on Application for Leave to Institute Derivative Action
Outcome
Application allowed; leave granted to Applicants to institute and prosecute derivative action on behalf of the 2nd Respondent.
Legal Topics
Derivative Action, Corporate Governance, Shareholder Rights, Notice Requirements, Good Faith Requirement
Source Language
English
Company Law Civil Procedure Derivative Action Corporate Governance Shareholder Rights Notice Requirements Good Faith Requirement

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Parties

Justine Marwa Range

Applicant

David Range Boaz

Applicant

Range Boaz Range

Respondent

Jura Tanzania Limited

Interested Party

Procedural Posture

Misc. Civil Cause (derivative Action Leave Application) / Ruling on Application for Leave to Institute Derivative Action

Legal Issues

  1. 1 Whether the Applicants are entitled to leave to institute and prosecute a derivative action on behalf of the company under section 234(1) of the Companies Act
  2. 2 Whether the statutory conditions for granting leave under section 234(2) of the Companies Act are satisfied

Ratio Decidendi

The Applicants, as members of the company, satisfied the statutory requirements under section 234(2) of the Companies Act by issuing proper notice to directors, acting in good faith, and demonstrating that the action is in the company's interest due to irreconcilable disputes and inability of the board to act. Leave to institute and prosecute derivative action is therefore granted.

Court Disposition

Application allowed; leave granted to Applicants to institute and prosecute derivative action on behalf of the 2nd Respondent.

Orders

  • Leave to institute and prosecute derivative action on behalf of Jura Tanzania Limited granted to the Applicants.
  • Each party to bear their own costs.