Friday, March 24, 2017

Vodacom in court over DSE shares

FAUSTINE KAPAMA
THE parties into the Vodacom share attachment case yesterday locked horns on whether Vodacom Group Limited should not be allowed to dispose of 1,092,000,130 shares in whatever manner, pending determination of an application lodged by businessman Moto Mabanga.

While advocate Gabriel Mnyele, for the businessman, seeks orders for “status quo” to be maintained to the effect that Vodacom Group Limited should not proceed to listing the shares at the Dar es Salaam Stock Exchange, advocate Fatma Karume, for the company, was to the contrary view.
Judge Amir Mruma, who is hearing the matter before the High Court’s Commercial Division, said that he would deliver his ruling on March 27, after going through the submissions presented by the parties. He also ordered the counsel for the company to file her counter affidavit by March 30.
Mr Mabanga has filed an application before the High Court’s Commercial Division, seeking orders for attachment of 1,092,000,130 shares of Vodacom Tanzania Public Limited Company to recover a debt amounting to over 40bn/- he is demanding.
In his submissions, advocate Mnyele told the judge that as it has been indicated in the plaint of the suit that has been filed, Vodacom Group Limited, who is among defendants in the matter, intends to list the shares after April 19, this year, and his client’s applications target on the said shares.
“These shares are central in our application. If the shares are left free, it may defeat the purpose of the application and the suit. I say so because chances are that Vodacom Group Limited may proceed to dispose of the shares even before being enlisted,” he submitted.
In order to put the applicant and the respondents in equal footing, according to the advocate, the counsel for the respondents should provide a commitment to the court that the shares held by Vodacom Group in Vodacom Tanzania Public Limited Company should not be disposed of whatsoever.
Alternatively, advocate Mnyele requested the court, as it may appear justice and convenient to the parties, to issue an interlocutory order to maintain the status quo, pending determination of the application.
“The status quo should be to the effect that (Vodacom Group Limited) should not dispose or proceed to list the shares in the Dar es Salaam Stock Exchange until the application is determined,” the advocate forcefully submitted. In her brief response submissions, Ms Karume categorically declined the invitation to make a commitment as far as the disposals of the shares are concerned.
The seasoned advocate told the court that neither the law allowed her to do so nor was a party to the proceedings.
According to her, she had attended the court session as an advocate for the respondents and that she had no powers to provide any commitment on the matter. As regard to the interim order sought, she submitted that the issue related to the balancing of the rights of the parties.
“What the applicant is inviting the court is not to go through the process of balancing the rights such as having a prima facie case, balance of convenience and irreparable loss. Without addressing the minds on these three issues, the court will not exercise its jurisdiction fairly,” she submitted
. In the main application, the businessman, acting as receiver of Namemco Energy PTY Limited, is further seeking for orders to appoint him a receiver of the shares in question and order Vodacom Tanzania Public Limited Company to pay all the dividends, meaning from the said shares to him.
Pursuant to appointment thereof, the applicant is requesting the court to order Vodacom Group Limited to hand over the share certificates and any other document of title for the shares to him, pending determination of his main suit to facilitate the receivership.
In the main suit, the businessman is seeking for judgment and decree for the court to open the veils of incorporation of Vodacom Group Limited and Vodacom Congo DRC SPRL and that the court should find that the two companies are practically one and the same

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