State to wind up land buying companies

The Government intends to wind up land buying companies to safeguard investors’ assets.By Boniface Gikandi

Senior Deputy Registrar of Companies Francis Ng’ang’a said unscrupulous directors of the companies were clinging to their offices in order to continue exploiting shareholders.

Speaking during an extraordinary meeting for Ngimu Farm Ltd in Murang’a South District, he said many companies had stopped convening members’ meetings contrary to the laid down regulations and instead forge minutes.

"Directive to wind up was issued long ago by the Government but some errant directors have failed to comply. We are interested in protecting the investors’ interests and we are now monitoring the companies performance keenly," said Mr Ng’ang’a.

During the meeting more than 700 shareholders of the farm resolved to wind up the company and dispose off their property and assets.

Irregularly sold

Led by their chairman Henry Mwangi, the shareholders also resolved that Sh 27 million currently in custody of a Nairobi law firm be shared among all members.

Mwangi said some parcels of land irregularly sold by the previous management would be repossessed.

"With only a year in office we have discovered a lot of mess amounting to wastage of millions of shillings on legal tussles that could have been solved locally," said Mwangi.

They also endorsed conversion of one coffee factory to a community polytechnic to offer vocational training.

A section of members who opposed winding up of the company were defeated after majority supported the proposal by the management. Kandara Investments also held a meeting On Wednesday but shareholders resisted a proposal to dispose off their land to an investment company.

During a general meeting, they barred their chairman, Mr Wilson Mburu, from selling off their 500 acres of land. They resolved that the land be sub divided amongst the members.

At one point police intervened after the meeting turned chaotic.