Kenya Tea Development
Agency (KTDA) got a green light to conduct directors’ elections, after a
petition by the Ministry of Agriculture to suspend directors elections was thrown
out.
Judge Antony Mrima ordered
the agency was free to conduct the elections.
In the suit contested by KTDA managing 54 tea factories, Ministry
of Agriculture and Agriculture Food Authority (AFA) instituted move to suspend
directors’ election.
The petition was
dismissed when Agriculture Cabinet Secretary Peter Munya has been conducting
public participation on the proposed tea reforms.
A month ago, the regulator had released a timeline on implementation of the proposed regulations now before the
delegated committee on the tea regulation in
Parliament.
KTDA Holdings and KTDA
Management Services, Lawyer Benson Millimo had told the court that KTDA
Holdings is a private limited liability entity whose shareholders are the 54
tea factory companies.
He added that the Tea Factory Companies are private limited liability companies whose membership
and tenure of their Board of Directors there of is purely an internal management
affair which is guided by their respective companies’ articles of
association.
the view held by the AFA that there lacked a legal framework under which the
factories can hold their elections; arguing that Factory Directors’ elections
are an annual statutory process under the Companies Act, under which the
factory companies have been undertaking the elections.
The authority, he explained
had no mandate to attempt to stop the elections, since it was not a shareholder
in any of the Tea Factory Companies.
private limited liability companies under the Companies Act; and which were
entitled to the rights pertinent to such registration.
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