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The High Court overruled a preliminary objection in a company petition for unfair prejudice, holding that locus standi and limitation issues required evidence.
The respondent is unable to pay its debts, has ceased business, and its license has been cancelled. The debenture appointing Receivers/Managers is invalid for want of proper board authority and quorum. The 4th petitioner has locus standi as both creditor and shareholder. The company should be wound up, a liquidator appointed, and an investigation conducted into the affairs of the respondent and its relationship with Citibank Tanzania Ltd.
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