Kiwa Industries directors dragged to court for failure to hold AGMs, pay shareholders dividends for 15 years
A shareholder has dragged Kiwa Industries, a company engaged in the manufacturing of building materials and four of its directors to the Commercial division of the High Court in Kampala for failure to relinquish their positions in the company.
Lucy Bwanika, a shareholder says Mary Kizito Kisitu, Rose Agnes Wasswa, Roy Jude Mutebi and Mathias Ssekatawa, a lawyer with MMAKS Advocates who are all directors in Kiwa Industries have since 2004 when they became directors failed to conduct Annual General Meetings, a thing she says is detrimental to her and other shareholders.
“The said shareholders have failed to declare dividends to the shareholders since they became directors to date. The directors have been mismanaging the affairs of the company to the prejudice of the applicant and other shareholders,”Bwanika says.
The Kiwa Industries shareholder avers that the directors have also failed to pay Uganda Revenue Authority taxes totaling to one billion shillings since 2009 which she says is bad for the company as well as failure to declare dividends to the shareholders since they became directors.
According to Lucy Bwanika, failure by the directors to resign has put the company in danger of being sold, destroyed or damaged.
She reveals that she filed a suit before the civil division of the High Court in Kampala but the same has never been heard by court.
Orders
The applicant wants court to issue an order that all the directors of Kiwa Industries Limited vacate office but also order that shareholders of the company hold an extraordinary general meeting to appoint interim directors pending the disposal of the case filed in the civil division of the High Court last year.
“Court should issue an order that the new interim directors conduct an audit report for the company before the hearing and determination of the case filed in court in 2018,”Lucy Bwanika avers.
The case was supposed to come up for hearing on Tuesday justice Faith Bitature was not around and it was adjourned to November 19.
