Robert Njoka Muthara is seeking to freeze the funds held in four accounts at the National Bank of Kenya, which belong to a company engaged in motor vehicle services.
He also wants the money, belonging to New Embu Uhuru Garage Limited, to be frozen until a case he has filed contesting the directorship of the company is heard and determined.
Muthara claims to be an heir and beneficiary of the Estate of the Late Josphat Njoka Mbiriai, who was one of the founding members and a shareholder of the company.
According to court documents, all the founding members and shareholders of the company, which was established in 1980, have passed away, and their respective estates are subject to succession proceedings.
Referring to orders issued on September 23, 2021, Muthara states that the court directed the completion of the administration of the deceased shareholders’ estates in order to exercise the rights of shareholders.
He alleges that Margaret Rachel Mbogo, along with others, is fraudulently and illegally altering the shareholding structure of the company, thereby gaining access to the funds held in the four accounts at the National Bank of Kenya.
Muthara has also implicated seventeen other beneficiaries of the company, claiming that they are involved in fraudulent and illegal alterations of the shareholding structure of New Embu Uhuru Garage Limited.
He argues that these alterations have been carried out in blatant disregard of the court’s orders issued on September 23, 2021.
In court documents, Muthara mentions that the Registrar of Companies, in a letter dated May 27, 2020, expunged changes made to the company structure and directed that no company meeting should be held before the transmission of shares.
He asserts that no transmission of shares has taken place since the administration of the deceased shareholders’ estates is still ongoing.
Muthara argues that no shareholder meetings have been held, and there is no company resolution approving any structural changes to the company. Consequently, any such meeting would be deemed invalid.
He is seeking an injunction from the Commercial Court to prevent Mbogo and the other sixteen individuals from conducting any business as shareholders or directors of New Embu Uhuru Garage Limited until his application is heard and determined.
Furthermore, Muthara requests that the National Bank be prohibited from disbursing any funds held by the company to Mbogo or any other person or entity pending the hearing and determination of his lawsuit.
He contends that the company affairs of New Embu Uhuru Garage Limited are being conducted in an oppressive, illegal, and prejudicial manner, which adversely affects the interests of its members, including himself and the Estate of his late father, Josphat Njoka Mbiriai.
