Meridian Acceptances Limited v Muchungu (Commercial Case E743 of 2021) [2025] KEHC 10037 (KLR) (Commercial and Tax) (10 July 2025) (Ruling)

Summary at a glance

Facts

Meridian Acceptances Limited filed a Notice of Motion against James Ndwigu Muchungu, seeking orders compelling disclosure of audited financial statements, bank account statements, and records of meetings and resolutions. The plaintiff also sought an interlocutory injunction to prevent changes to the company's shareholding and directorship structure.

Issues

• Disclosure of company records
• Interlocutory injunction to prevent alteration of shareholding and directorship structure

Reasoning

The court found that the plaintiff had a prima facie case and that the denial of access to records and alteration of the company's structure could cause irreparable harm. The court also noted the admitted gaps in statutory compliance.

Outcome

The court granted the injunction and appointed an inspector to conduct an inspection of the company's records.

Orders

• Interlocutory injunction against altering shareholding and directorship structure
• Appointment of a certified public accountant to inspect company records

Remedies

• Inspection of company records
• Appointment of an inspector to report on company's financial standing and compliance

Authorities cited