Court stops Utumishi investment AGM after suit filed

The High Court blocked the Annual General Meeting of Utumishi Investment Limited slated for November 19

This is after the members of the Kenya Police Sacco moved to court seeking orders restraining Utumishi Investments officials from holding any meetings pending hearing and determination of the application.

Milimani Commercial Judge Josephine Mong’are certified the matter urgent, issuing an order that Utumishi, Ruaraka Housing Estate Ltd, and Kenya National Police DT Sacco are barred from calling, organizing, convening, or holding any AGM until the court has made a determination on the matter.

“The said application be mentioned for directions on 19/12/2024. In the interim orders in terms of prayer 2 are granted,” ruled the court.

In the application, the members alleged that the officials of Utumishi Investment Limited, have called the AGM despite previous court orders barring such activities pending the resolution of an application filed earlier in February 2024.

The members argued that if the meeting goes ahead, it would allow the officials to cover up their alleged illegal actions, further damaging the assets and properties held in trust for them.

“The 2nd Respondent’s illegal officials have repeatedly conducted business without the knowledge and consent of the rightful members,” argued the members.

“They have locked out the majority of the members from previous AGMs, held in secrecy, and failed to provide required notices, thus hindering any meaningful participation or oversight.”

The members also alleged that the upcoming AGM and its planned elections could be used as a strategy by the officials to extend their hold on office and continue their alleged illegal activities without scrutiny.

The proposed agenda for the AGM includes the appointment of an independent auditor for the year 2024 to audit books of accounts, receive and adopt the budget for the year 2024, to receive, consider and approve the annual report and financial statements of Utumishi Investment Limited for the year ending December 31, 2023, elections among others.

The applicants sought urgent relief from the court to prevent the AGM from proceeding, as they believe it could be used to legitimize actions that have already caused significant financial losses to the members.

“If this is allowed to commence it will be tantamount to giving the 2nd Respondents officials a golden opportunity to sanitise their illegal acts without being investigated or probed on the previous illegal activities that we had come to this very honourable court to question and if wrongful and illegal activities established, the responsible parties to be held liable,” court was told.

They argued that unless the court intervenes, the suit will be rendered meaningless, and they will face further irreparable losses to properties that rightfully belong to them.

“We are beseeching this honourable court to at least preserve the little that is still remaining of the property held in trust in the interest of justice,” read the court documents.

Judge Mong’are directed responses to the case to be filed within seven days.

The case will be mentioned on December 19 for further directions.