- Njoka also wants the money frozen until a case he has filed contesting the directorship of the company is heard and determined.
- It is his case that the affairs of the company are being conducted in a manner that is oppressive, illegal and prejudicial
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A businessman has sued National Bank for allegedly facilitating the fraudulent withdrawal of more than Sh14 million from a company's account.
Robert Njoka Muthara is seeking to freeze monies held in four accounts at the bank belonging to New Embu Uhuru Garage Limited, a company that deals with motor vehicle services.
Njoka also wants the money frozen until a case he has filed contesting the directorship of the company is heard and determined.
He claims he is an heir and beneficiary of the estate of Josphat Njoka Mbiriai who was one of the founding members and a shareholder of the said company but he is deceased.
"All the founding members and shareholders of the said company which was founded in 1980 are deceased and their respective estates are subject to succession proceedings," he said in the court documents seen by the Star.
Njoka states that the court in orders issued on September 23, 2021, directed that parties must complete administration of the estate of the deceased shareholders in order to exercise the rights of shareholders.
In his court papers Njoka claims one Margaret Mbogo who is also a beneficiary of the company, jointly with others caused the fraudulent and illegal altering of the shareholding structure of the said company.
He alleges that she jointly with others had access to the funds held in the four accounts at the National Bank of Kenya.
Njoka has named seventeen other people who are beneficiaries of the said company and who he also claims are causing fraudulent and illegal altering of the shareholding structure of the company.
“The said illegal altering of the shareholding structure has been done in blatant disregard to the orders issued by this honourable court," affidavits read.
He notes that the Registrar of Companies in a letter dated May 27, 2020 expunged from the register changes made to the company structure and directed that no company meeting should be held before the transmission of shares.
“No transmission of shares has taken place as administration of the estate of the deceased's shareholders is still ongoing,” Njoka said.
He claims no meeting of shareholders has ever been held and neither is there a company resolution sanctioning any structural changes of the company and any such meeting would therefore be invalid.
He wants the commercial court to issue an injunction against Mbogo and 16 others from conducting any business as shareholders or directors of New Embu Uhuru Garage Limited pending the hearing and determination of his application.
He also wants National Bank prohibited from disbursing any funds held by the said company to Mbogo and any other person or entity pending a hearing and determination of the matter.
It is his case that the affairs of the company are being conducted in a manner that is oppressive, illegal and prejudicial to the interest of its members including him and the estate of his father Josphat Njoka Mbiriai.
The case will be mentioned on Monday for directions.