Julius Waweru v Engen Kenya Limited [2019] KEELRC 883 (KLR)
- Court
- Employment & Labour Relations Court
- Case number
- 883
- Citation
- [2019] KEELRC 883 (KLR)
- Decided
- 20 September 2019
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeLabour DisputePostureClaimant's Motion for Urgent Order and Interim ReliefCoramMbaru, Onyango
Holding
The sale of the majority shareholder's shares to the proposed second respondent did not affect the existence and legal status of the respondent.
Facts
Claimant was dismissed on 31.3.2017 and brought a suit for Kshs.8,505,860.45. The majority shareholder of the respondent sold her shares to the proposed second respondent on 31.3.2019.
Issues
- Whether the sale of shares means transfer of business and end of the respondent.
- Whether the proposed second respondent is a necessary party.
- Whether the court should order the respondent and/or the proposed second respondent to furnish security equal to the sum claimed.
Reasoning
The court held that a sale of shares does not affect the legal status of the company, and the change of shareholders does not extinguish the legal rights and obligations of the company.
Outcome
The application was dismissed.
Authorities cited
Legislation (2)
- ELRC Act
- ELRC Procedure Rules
Cases cited (3)
- Delina General Enterprise (K) Ltd vs Kenol – Kobil Ltd
- Elizabeth Washeka
- Absyssinia Iron & Steel Limited
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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