new life hardware co ltd another vs shandong export co ltd 2 others 2022 tzhccomd 287 16 september 2022

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

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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

  1. 1 Whether failure to plead and annex a board resolution authorizing institution of suit renders the suit and application incompetent
  2. 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.