[2002] UGCommC 10

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\mdispDef1\mlMargin0\mrMargin0\mdefJc1\mwrapIndent1440\mintLim0\mnaryLim1}{\info{\title ,0 }{\author Administrator}{\operator skivumbi}{\creatim\yr2010\mo3\dy12\hr12\min2}{\revtim\yr2010\mo6\dy1\hr10\min58}{\version9}{\edmins19}{\nofpages7}{\nofwords2154} {\nofchars10910}{\nofcharsws13038}{\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.microsoft.com/office/word/2003/wordml}}\paperw12240\paperh15840\margl1440\margr1440\margt1440\margb1440\gutter0\ltrsect \widowctrl\ftnbj\aenddoc\trackmoves1\trackformatting1\donotembedsysfont0\relyonvml0\donotembedlingdata1\grfdocevents0\validatexml0\showplaceholdtext0\ignoremixedcontent0\saveinvalidxml0\showxmlerrors0\noxlattoyen \expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 \jexpand\viewkind1\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot8604358\newtblstyruls\nogrowautofit \fet0{\*\wgrffmtfilter 2450}\ilfomacatclnup0\ltrpar \sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid11428167\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (} {\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9 \pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 AT KAMPALA \line (COMMERCIAL COURT) \par CIVIL SUIT NO. 191 OF 2002 \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 ALLIED BANK INTERNATIONAL LTD }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 APPLICANT }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 VERSUS \line SADRU }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 KARA AND ABDUL KARA \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85. DEFENDANTS \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 BEFORE: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid8604358\charrsid7889265 THE HONOURABLE MR. JUSTICE JAMES OGOOLA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid7889265 \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid8604358\charrsid7889265 RULING}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid7889265 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 At the commencement of the hearing of the above suit, learned counsel for the two Defendants to the Counter-claim (Mr. Muwema and Ms Samula) raised a preliminary point of law, challenging the competence of the counter-claim. The grounds of th}{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 e challenge were stated to be: \par }\pard \ltrpar\s15\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid13249273 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 That the derivative action brought by the 1st and 2nd Plaintiffs (for the benefit of the 3rd and 4th Pl}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 aintiffs) to the Counterclaim: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (i) has not been s}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 anctioned by \'93leave of court\'94; \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (ii) lumps together as Plaintiffs the minority shareholders as well as the two wronged companies (on behalf of whom t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 he suit has been brought): and \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (iii) the companies being under receivership, the Receiver (not the shareholders/directors) would be the right Plaintiff. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 The general rule for derivative actions is that the proper plaintiff in an action to redress an alleged wrong to a company, is the company itself \emdash see }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Foss v Harbottle (1843) 2 Hare 461. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 However, there are exceptions to that general rule, the parameters of which have been carefully crafted and strictly defined. The rationale for these exceptions is articulated by }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Gower\rquote s Principles of Modern Company Law (2 Edn.) at p.528, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 thus: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93If there were no}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 such exceptions, the minority }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 would be completely}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 in the hands of the majority. }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 Even the limitati}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 ons imposed by the substantive }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 law would be stultifi }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 ed, for as long as the company }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 remained a going concern no action could effectively be brought to enforce them.\'94 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 It was argued by learned counsel (Mr. Muwema) that with or without exceptions to the general rule, any person bringing a derivative }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265\charrsid7889265 suit}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 must first seek the Court\rquote s leave. Learned counsel for the counter claimants (Mr. Kanyerezi) challenged this view of the law. He contended that that was the law of England, which has been codified into statute \emdash see Order }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 15, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 r.12A RSC. I agree. The law in England appears to be succinctly stated by }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Charlesworth & Moss on Company Law (j6th Edn.), at p.313, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 thus: \par }\pard \ltrpar\s15\qj \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93The }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265\charrsid7889265 preliminary}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 procedure was approved by }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 KNOX}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 J in }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 Smith v Croft (No.2) [1987) BCL 206 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 as a half way house between assuming for pro}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 cedural purposes either that all}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 allegations are true or requiring the Plaintiff to prove }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265\charrsid7889265 eve}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 rything as a preliminary issue \'85\'85.}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 0.15, rule 12A of the RSC implements these decisions by requiring a minority shareholder to apply for leave to continue t}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 he action if the defendant has }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 given notice of intention to defend.\'94 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid7889265 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 There is no Ugandan equivalent to the English 0.15, r.12A. The Ugandan law on derivative actions appears to have been effectively articulated and compacted into the case of }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Salim Jamal \line v Uganda Oxygen Ltd, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 Civil }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Appeal No. 64/95 S. Ct, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 in which ODER JSC quoted DENNING M. R. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 in extenso }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 to the effect that: \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (a) It is a fundamental principle of our law that a co mpany is a legal person, with its own corporate identity, separate and distinct from its directors or shareholders and with its own property rights and interests }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 to which alone it is entitled. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (b) If it is defrauded by a wrongdoer, the company itself is the one}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 person to sue for the damage. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (c) To redress the injustice that would otherwise ensue [where the misc}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 reant majority refuse to sue], }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6387743 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93a suit could be brought by individual corporators in their private }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 characters, and asking in such }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 character the protection of rights to which in their corporate character they were entitled\'94 \line }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 - }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 per WIG}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 RAM V-C, in }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Foss v Harbottle. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265\charrsid6387743 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (d)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265\charrsid7889265 In}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 the case described in (c) above, the minority shareholders might file a bill asking leave to use the name of the company. If t hey show reasonable grounds for charging the directors with fraud, the Court would appoint the minority shareholders as representatives of the company to bring proceedings in the name of the company against the wrong done to it \emdash see WOOD V-C in }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Merry Weather [1867] LR 5 EO 464n. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid7889265 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (e)According to LORD DENNING, to sue in the manner described in (d) above, would be \'93a circutous course\'94, at any rate in cases where the fraud itself could be prove}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 d on the initial application.\rquote \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 To avoid that circuity, LORD HEATH}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 ERLY LC held that: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93the minority shareholders themselves could bring an action in their own names (but in truth on behalf of the company) against the wrong doing directors for the damage}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 done to the company; provided }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 always that it was impossible to get the company itself to sue them.\'94 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (f) Stripped of mere procedure, the principle is that, where the wrong-doers themselves control the company, an action can be brought on behalf of the company by the minority shareholders, on the footing that they are its representatives, to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 obtain redress on its behalf. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 In light of all the a}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid7889265 bove, ODER JSC concluded thus: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93Two recent decisions in our juris}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 diction will, I think, suffice }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 to illustrate that Courts will go behind the corporate veil in the interest of jus tice, on grounds of fraud, to enforce compliance with contractual obligations or enforce economic realities obtaining under a holding company and its subsidiaries. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid7889265 \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 [}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid11893895\charrsid7889265 See}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 National Enterprise Corporation v. Nile Bank, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Civ. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Appeal}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 No. }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 17/94}{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 (SCV) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (unreported); and Earn }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 International v. Mohamed Halid el Fathi, Civ. Appeal No. }{ \rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 6/93}{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 (SCV) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (unreported].\'94 \line Such is the law applicable in Uganda. There is no overt reflection in that law requiring the minority shareholder to first seek and receive permission in order to use the company\rquote s name in a suit; nor is the minority shareholder required to first seek and receive Court\rquote s leave prior }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 to filing his derivative suit. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 What is abundantly obvious, however, is the obligation for the particular shareholder to bring himself squarely within the ambit of the exception to }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Foss v }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Harbottle}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 . The criteria for this have been clearly established by, among others, }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Gower\rquote s Principles of Modern Company Law (3rd Edn.). }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 The principles were recited, with approval, by ODER JSC in }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 the Uganda Oxygen case }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (supra) }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 at p.137, thus: }{ \rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid11893895 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93(i) Normally, the wrong}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 complained of must be such as }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 to involve fraud on the minority, which could not be validly waived by the company in a general m}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 eeting, such con duct include: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (a) Expropriation of the property of the company or, in some circumstances that of the minority;}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (b) Breach of the director\rquote s du}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 ties of subjective good faith; \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (c) Voting for company resolutions not bona fide in}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 the interests of the company; \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (ii) It must be shown that the alleged wr}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 ong doers control the Company; \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (iii) The Company must be a defendant in the action }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 ... }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 the }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 company is the true Plai}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 ntiff, and if a money judgment }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 is recovered against the true defendants }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 the wrong }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 doing directors or controllers }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 this wi}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 ll be in favour of }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 the company and not in favour of the individual \line shareholder who is}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 nominal Plaintiff The company }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 cannot, in fact, be the Pla}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 intiff, because neither of its }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 organs \emdash the boar}{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 d of directors and the general }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 meeting }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 will authorise suit }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 by it. As the next best }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 thing the court insists upon its being made the nominal defendant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (-- see }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Spo}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid11893895 kes v Grosvenor Hotel [1897] 2 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 QB 124). }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895\charrsid11893895 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 - }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 If the company }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 has ceased to exist and cannot }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 be resuscitated... it seems that no action can \line be brought: }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 Clarkson v Davies [1923}{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid11893895 ] AC }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid11893895 100 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\i\insrsid11893895\charrsid11893895 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (iv) The shareholder must su}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 e in a representative capacity }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 or on behalf of himse} {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 lf and the other members other }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 than the real defendants ... }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 for it ensures that all the }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 other shareholders are also bound by the result of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 action [i.e. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 res}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 judicata].\'94 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 All the above forms a compact summary and encapsulation of the law on derivative actions. It answers broadly all the three grounds advanced by learned counsel Muwema and Samula. Nonetheless, to answer those grounds even more specifically, I will now deal with each one of the three grounds }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 seriatim: }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid11893895 \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 1. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Court\rquote s}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 permission/leave }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 No such requirement is directly reflected in t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 he Ugandan law analysed above. \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 2. Proper Plaintiff/Defendant }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash It was contended that only the company itself can bring a derivative action; that the minority shareholders cannot sue as Plaintiffs together with the Company (also as Plaintiff); and that the shareholders\rquote complaint must be distinct from that of the Company. This is clearly wrong. Where the company itself refuses to sue (or those who control it refuse to), then clearly the minority may bring the action in their }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 own names }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (but in truth on behalf of the Company -- see }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 East Pant du Lead }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Mining }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8604358\charrsid11893895 Co. v. Merryweather}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 (1864)2 H & M 254. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 The Plaintiff shareholder: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid13249273\charrsid7889265 Is}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 not acting as a representative of the other shareholders but as a representative of the \line Company, and }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 the action will necessarily present features qu}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid11893895 ite different from those in the}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid11893895\charrsid7889265 normal}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 representative action.\'94 }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 [Emphasis added] \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 - }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11893895 see G}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 ower\rquote s }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Principles of Modern Company Law (2 Edn.) p.531. }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid10517597 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 One of the \'93different/unusual\'94 features redounds directly on the proper parties to the suit and their proper designation. In this regard, }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Gower }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (supra) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 observes, }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 inter alia, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 that: \par \'93\'85..}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 the company is the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 true Plaintiff }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 ... }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 individual shareholder is the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 nominal Plaintiff}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid10517597 .}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 The company ca}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid10517597 nnot be the Plaintiff, because }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 neither of its organs }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 the board of directors and \line the general meeting }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 will authorise suit by it. As the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 next best thing }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid10517597 the Court insists upon its }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 being made the }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid8604358\charrsid7889265 nominal defendant. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 [Emphasis added]}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 The complexity of the procedural features attaching to a derivative action as set forth above does, in my view, merely mask the simplicity of the real intention underlying this kind of suit \emdash namely to enable the minority redress a wrong wrought upon the company by a miscreant majority. To that extent, the propriety of particular designations put on the parties is totally subsidiary to the discussion of the true and real issues at hand. I find totally nothing amiss concerning the joinder of parties in this instant case \emdash and if I did, I would not hesitate to invoke the provisions of 0.1, r.9 of the Civil Procedure Rules (under which no suit shall be defeated by reason of the misjoind}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 er or non-joinder of parties). \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8604358\charrsid10517597 3. Receivership}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash For the third ground, it was contended that in the instant case, only the receiver can sue on behalf of the Company. Yes, but if the receiver (who is by definition \'93in control of the company\'94 ) is at the same time a wrong doer and refuses to sue, then he is no different from a controlling shareholder/director who similarly refuses to sue \emdash see }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Gower (2nd Edn), p.529. }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 In the instant case, it has been alleged that ALLIED BANK, together with the Receiver (Mr. Mutiso) seized the Company\rquote s property, without benefit of any valid debenture, and then sold that property illegally (see paragraph 13 of the counterclaim). If this is true \emdash and now is not the time to go into the merits of this case \emdash then it would fall squarely within the criterion of \'93fraud\'94, constituted by }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 \'93expropriation }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 of the company\rquote s property.\'94

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 The contention by learned counsel Muwema that in the instant case there was no evidence (except that emanating from Mr. Kanyerezi at the bar) to the effect that the Receiver refused to institute proceedings on behalf of the company, is answered authoritatively by }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Gower }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 (supra), }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 at }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 p.533, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 thus: \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 \'93English }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 cases }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 recognise that there is no point in formally asking the directors to institute \line the proceedings if they are to be the defendants, and that it is not necessary to convene a general \line meeting and to invite it to resolve upon proceedings in the company \rquote s name, provided that the Court can be satisfied }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 aliunde }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid10517597 that the wrongdoers are in }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 effective control }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash }{\rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid8604358\charrsid7889265 Atwool v. Merryweather (1867) 5 Eq. 464 n.\'94 }{ \rtlch\fcs1 \ab\ai\af0 \ltrch\fcs0 \b\i\insrsid10517597 \par }\pard \ltrpar\s15\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10517597 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 Equally, learned counsel\rquote s vigorous argument concerning the law\rquote s requirement to plead \'93fraud\'94 specifically, and then to give \lquote particulars\'94 thereof, was misplaced. Clearly, the argument confused the concept of \'93fraud\'94, as used in criminal statutes }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 strictu sensu, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 with \'93fraud\'94 as used for purposes of derivative actions. I am satisfied that the two concepts are quite different. The latter is, in effect, a term of art which is interchangeable with \'93wrong doing\'94 \emdash see especially LORD DENNING\rquote s statements }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (supra), }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 in which the term \'93defraud\'94 is very clearly used as a synonym for \'93wrong doing\'94. See also Gower }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid8604358\charrsid7889265 (supra) }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 at p.588, where the learned author talks of a \'93wrong\'94 done to the company - interchangeably with \'93fraud\'94 \emdash and then specifically lists the following examples}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 of such \'93fraud\'94 as including: \par (i) expropriation \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (i}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 i) breach of directors\rquote duties \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 (iii) voting resolutions that are not bona fide}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 the interests of the company. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 The preliminary poi}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 nt of law is hereby overruled. \par Costs to be in the cause. \par \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid8604358\charrsid7889265 Ordered accordingly. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597\charrsid10517597 \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10517597 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 James Ogoola \line }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid8604358\charrsid7889265 JUDGE }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \line 01/07/02}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10517597 \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid4400587 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid8604358\charrsid7889265 DELIVERED IN OPEN COURT, BEFORE: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \line Fred Muwema }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587\charrsid7889265 Esq.\}}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \line Claire Samula}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587\charrsid7889265 ,\} \emdash }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 Counsel for 3}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587 rd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 & }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587 4t}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 h Defendants to counter-claim \line Masembe Kanyerezi, }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587\charrsid7889265 Esq.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \emdash Counsel for 1st & 2nd Plaintiffs to }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4400587\charrsid7889265 counter-claim}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8604358\charrsid7889265 \line J. M. 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