new life hardware co ltd another vs shandong export co ltd 2 others 2022 tzhccomd 287 16 september 2022
Failure by a company to plead and annex a board or members' resolution authorizing institution of legal proceedings renders the suit and any related application incompetent; such requirement is grounded in section 147(1) of the Companies Act and established judicial precedent.
- Citation
- new life hardware co ltd another vs shandong export co ltd 2 others 2022 tzhccomd 287 16 september 2022
- Parties
- Applicant/plaintiff: New Life Hardware Company Limited; Applicant/plaintiff: Manwaly Investment Limited; Respondent/defendant: Shandong Locheng Export Co. Limited; Respondent/defendant: Taishan Technology Limited; Respondent/defendant: Crysor Company Limited
- Court
- TZHCCOMD
- Jurisdiction
- Tanzania
- Judgment Date
- 16 September 2022
- Procedural Posture
- Commercial Case and Miscellaneous Commercial Application / Ruling on Preliminary Objection
- Outcome
- Suit and application struck out with costs
- Legal Topics
- Requirement of Board Resolution for Company Litigation, Competency of Suit by Company, Preliminary Objection, Pleading Requirements
- Source Language
- English
Case Brief
Summary, issues, holding and outcome
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Parties
New Life Hardware Company Limited
Applicant/plaintiff
Manwaly Investment Limited
Applicant/plaintiff
Shandong Locheng Export Co. Limited
Respondent/defendant
Taishan Technology Limited
Respondent/defendant
Crysor Company Limited
Respondent/defendant
Procedural Posture
Commercial Case and Miscellaneous Commercial Application / Ruling on Preliminary Objection
Legal Issues
- 1 Whether failure to plead and annex a board resolution authorizing institution of suit renders the suit and application incompetent
- 2 Whether the requirement for a board resolution is a pure point of law or requires evidence
Ratio Decidendi
Failure by a company to plead and annex a board or members' resolution authorizing institution of legal proceedings renders the suit and any related application incompetent; such requirement is grounded in section 147(1) of the Companies Act and established judicial precedent.
Court Disposition
Suit and application struck out with costs
Orders
- The suit and the Miscellaneous Commercial Application are struck out for want of board resolution.
- Costs awarded to the respondents.
Full Case Text
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