May Susan Spinks & another v Ralph Graeme Spinks & another; Ben Zebulan Spinks & another (Interested Parties) [2021] KEHC 6748 (KLR)
- Court
- High Court of Kenya
- Case number
- 6748
- Citation
- [2021] KEHC 6748 (KLR)
- Decided
- 27 May 2021
The Court grants leave to the 1st Applicant to commence action against the two Respondents on behalf of the Company, but the dispute must be resolved through mandatory arbitration under Clause 60 of the Articles and Memorandum of Association.
Facts
The Company was incorporated by the 1st Applicant, 1st Respondent, and 2nd Respondent. They ran the Company together until their divorce in June 2019. The 1st Applicant claims the Respondents are misappropriating the Company's finances and wasting assets.
Issues
- Whether the 1st Applicant and her children are directors of the Company
- Whether the Company's accounts and finances are being wasted by the Respondents
- Whether the dispute between the parties should be resolved through arbitration
Reasoning
The Court finds that the allegations are bona fide and that the issues may dissipate if status quo is not preserved. The Court orders that status quo be maintained until the arbitration is heard and determined.
Outcome
The matter is referred to arbitration.
Orders
- Leave granted to the 1st Applicant to commence action against the two Respondents on behalf of the Company
- Status quo maintained respecting corporate affairs of the Company until the arbitration is heard and determined
- All further proceedings are stayed and referred to arbitration
Remedies
- Leave granted to the 1st Applicant to commence action against the two Respondents on behalf of the Company
- Status quo maintained respecting corporate affairs of the Company until the arbitration is heard and determined
Loading judgment…