Kilembe Investments Limited defies court order, holds AGM

Kampala, Uganda | THE INDEPENDENT | Kilembe Investments Limited-KIL has defied court orders restraining them from holding their Annual General Meeting.

KIL held the Eighteenth Annual General Meeting on Thursday at Virina Gardens in Kasese town.

Two shareholders were also voted to positions of directors of the board of the power company.

Those voted to the seven-member board include the Catholic Diocese of Kasese and Engineer Patrick Syaipuma Ndungo who replaced Swizin Asiimwe Sausi and Loice Biira Bwambale whose tenure of office expired.

However, the AGM in which the election was held was carried out amidst an injunction issued on Wednesday by Fort Portal High Court.

The injunction signed by Justice Wilson Masalu Musene, a copy of which URN has obtained, was based on an application filed by Sausi arguing that he was unfairly blocked from seeking re-election as a member of the board of directors.

The KIL committee which vets potential candidates for the positions of director rendered Sausi ineligible on grounds that he had served his two terms as a member of the board.

Sausi was voted to the board in June 2015. However, he had earlier served nine years as director of the same company before the company articles of association were amended in October 2015 to provide for a director to serve for not more than two terms.

Now Sausi argues that the law cannot be applicable to him since his other terms of office were served before an amendment was passed.

It was against this background the court in Fort Portal granted his plea and issued a temporary order against the AGM until the main application is heard on December 12.

However, Luke Kanyonyi, from Chan Masereka and Company Advocates, the lawyers for KIL said they had not been served with the order and therefore they could not stop the meeting based on rumours.

But Sausi accused KIL of being dishonest. He insists that the company was served the injunction.

Sausi argued the AGM had been held in contempt of court and thus all that has been done there is a nullity.

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URN