20120306 TZHC Dar es Salaam1

20120306 TZHC Dar es Salaam1

CMSA acted ultra vires its statutory powers under sections 21 and 22 of the Capital Markets and Securities Act by suspending NICOL's Board and CEO, freezing accounts, and ordering investigations without any allegation of fraud or unfair practice; certiorari and mandamus granted to quash and direct withdrawal of unlawful directives.

Citation
20120306 TZHC Dar es Salaam1
Parties
1st Applicant: Felix Mosha; 2nd Applicant: Kathleen Armstrong; 3rd Applicant: National Investment Co. Ltd (NICOL); 1st Respondent: The Capital Markets and Securities Authority; 2nd Respondent: Hon. Attorney General
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
6 March 2012
Procedural Posture
Misc. Civil Cause / Ruling on Application for Prerogative Orders
Outcome
Application granted in part; some prayers dismissed.
Legal Topics
Prerogative Orders, Ultra Vires, Natural Justice, Jurisdiction, Mandamus, Certiorari, Prohibition
Source Language
English
Administrative Law Securities Regulation Corporate Law Prerogative Orders Ultra Vires Natural Justice Jurisdiction Mandamus +2 more

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Parties

Felix Mosha

1st Applicant

Kathleen Armstrong

2nd Applicant

National Investment Co. Ltd (NICOL)

3rd Applicant

The Capital Markets and Securities Authority

1st Respondent

Hon. Attorney General

2nd Respondent

Procedural Posture

Misc. Civil Cause / Ruling on Application for Prerogative Orders

Legal Issues

  1. 1 Whether CMSA acted ultra vires its statutory powers in suspending NICOL's Board and CEO, freezing accounts, and ordering investigations
  2. 2 Whether the Applicants were denied their right to be heard (contravention of natural justice)

Ratio Decidendi

CMSA acted ultra vires its statutory powers under sections 21 and 22 of the Capital Markets and Securities Act by suspending NICOL's Board and CEO, freezing accounts, and ordering investigations without any allegation of fraud or unfair practice; certiorari and mandamus granted to quash and direct withdrawal of unlawful directives.

Court Disposition

Application granted in part; some prayers dismissed.

Orders

  • Certiorari issued to quash CMSA's decisions to suspend NICOL's Board and CEO, order handover to acting CEO, convene AGM, appoint new Board, and freeze bank accounts.
  • Mandamus issued directing CMSA to carry out its functions in accordance with the law and withdraw directives freezing NICOL's bank accounts.