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30 Nov 2006

Commercial And Corporate [2006] UGCommC 51

Joel Odong Amen & Anor v DrOcero andrew & Anor (HCT-00-CC-CS 602 of 2004)

Joel Odong Amen & Anor v DrOcero andrew & Anor (HCT-00-CC-CS 602 of 2004) [2006] UGCommC 51 (30 November 2006)

Court: Commercial Court of Uganda
Case number: HCT-00-CC-CS 602 of 2004

The court held that while the general rule is that only the company can sue for wrongs done to it (Foss v Harbottle), there are well-established exceptions, particularly where the wrongdoers are in control and prevent the company from acting. In this case, the plaintiffs, as minority shareholders, alleged that the majority shareholders (defendants) expropriated company funds and refused to account for or distribute the plaintiffs' 40% share of the sale proceeds. The court found that the pleadings disclosed sufficient allegations of wrongdoing and breach of trust by the majority, and that the…

Source excerpt

Shareholder Rights
Minority Protection
Derivative Actions
Company Law
Breach Of Trust

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1 Mar 2001

Civil Procedure [2001] UGCommC 1

Amrit Goyal v Hari Chand Goyal and Ors (High Court Miscellaneous Application No. 438 of 2001)

Amrit Goyal v Hari Chand Goyal and Ors (High Court Miscellaneous Application No. 438 of 2001) [2001] UGCommC 1 (1 March 2001)

Court: Commercial Court of Uganda
Case number: High Court Miscellaneous Application No. 438 of 2001

The court held that the applicant, as a shareholder, had locus standi to seek an injunction to restrain the respondents from interfering with the management and assets of Roadmaster Cycles (U) Ltd. The applicant demonstrated interests beyond mere financial gain, such as maintaining the company's integrity and harmonious relations, which are incapable of quantification and cannot be adequately compensated by damages. The issues raised by the applicant were substantive and required a full trial on the merits, not summary determination at the interlocutory stage. The balance of convenience favor…