CS Alfred Mutua entangled in Sh60m hotel shares Row
A British investor has petitioned the court to compel Tourism Cabinet Secretary Alfred Mutua to pay him Sh60 million for the purported purchase of his shares in a luxurious Nairobi hotel.
Mr. Ubhi Ripthuman Singh stated in a petition before the High Court that Dr. Mutua purchased 15 shares of the Lavington-based Brazilian Rodizio Ltd on October 6, 2017, but had not yet paid for the stake.
According to the Briton, the funds were to be deposited into a joint escrow account within thirty days of the acquisition of the shares.
Mr. Singh stated that he sent a letter to Dr. Mutua on June 28, this year, demanding that he fulfill his obligations and pay the Sh60 million.
“Consequently, the applicant has opted to institute civil proceedings for specific performance against the 1st respondent (Dr Mutua) who is now registered as a director and majority shareholder of the company,” according to him.
Mr. Singh claims that despite being a co-director, he has been sidelined in the administration and daily operations of the company despite being registered as a director and majority shareholder. Mr. Singh has named as defendants Dr. Mutua and co-director Ms. Emily Chebet Loroupe.
According to evidence presented in court, he purchased 30 percent of the business from Ms. Loroupe in March 2021 for Sh30 million and subsequently sold 15 shares to Dr. Mutua, making him the majority shareholder.
He claims that they purportedly agreed that a meeting of the company’s directors would be convened to approve the transaction, after which he would transfer his legal shares to Dr. Mutua. However, no such meeting has taken place since.
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Mr. Singh is concerned that if the company’s operations are mismanaged, he will be liable to third parties and other interested parties.
The British national asserts that he learned of multiple transactions and dealings in two bank accounts at NCBA established in the company’s name, but which he never authorized as co-director and authorized signatory.
According to court documents, he has repeatedly requested copies of various company documents about the 2022/23 fiscal year, but his requests have allegedly been disregarded despite his entitlement to receive the same.
“In the circumstances, it has therefore become necessary and urgent to seek this court’s intervention to protect the applicant from being subjected to further prejudice by the respondents, pending the hearing and determination of the application herein inter-partes as well as the main suit,” said the judge.
He has asked the court for an order prohibiting Dr. Mutua and Ms. Loroupe from withdrawing, transferring, or using the funds in the two bank accounts pending the outcome of the lawsuit.
Mr. Singh requests that the court compel his co-directors to provide him with copies of the hotel’s audited accounts and income tax returns for the previous year, as well as financial statements for 2022/23, income statements and cash flow statements, and debtors and creditors reports, among others.
CS Alfred Mutua entangled in Sh60m hotel shares Row