By NATION CORRESPONDENT
Posted Tuesday, December 27 2011 at 19:01
Posted Tuesday, December 27 2011 at 19:01
The decision by the acting Industrialisation minister to suspend the board of directors of East Africa Portland Cement Company has been challenged in court.
The application was filed under certificate of urgency by EAPCC managing director Kephar Tande, Kenya Airways Chief Executive Titus Naikuni, Board Chairman Mark Ole Karboro and Mr Hamish Keith.
They claimed that the acting Minister Amason Kingi and his Permanent Secretary Karanja Kibicho are illegally and unlawfully interfering in the management of the company.
“The Minister has issued illegal directions and orders on December 22 by which he suspended the entire board of directors of the company and required them to hand over all outstanding issues to the PS,” said the applicants.
They submitted that the appointment of Peter Korir as the acting managing director of the company was unlawful, irrational and in violation of the Constitution.
They claimed that the minister and the PS have no power to suspend the board since it is only the shareholders who can appoint directors.
The Minister suspended Mr Tande and eight members of the board, accusing them of poor management of the company.
Board chairman Mark ole Karbolo said the operations of the firm were outside the realm of the minister, citing the decline in government shareholding.
The will be heard inter-parties on January 5, 2012.
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