How laws enforce corporate rule

Before you can lean on the constitutional remedy you must show the information being withheld from you is putting another one of your fundamental rights in danger of being abused. Fotosearch 

By CATHY MPUTHIA

 

A common inquiry that I keep getting from this column, is what happens when the directors mismanage your company? What happens when a faction of the shareholders decide to keep the others in the dark and run the company as if it were their own?

What happens when the board of directors does not properly undertake its duties such that the value of shares comes down? I have previously written on it and suggested several remedies available to shareholders.

However, one of the solutions that an aggrieved shareholder may have in the event an individual runs the company to the detriment of the others is found in the Constitution.

Article 35 of the Constitution provides for the right to information. It is twofold, that is, any citizen may ask for information held by any state agency or information that