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3 Ex MPs In Court Over Ownership of Company

Three former Members of Parliament on Friday took their fight over ownership of their company, M/S NALEA General Merchants Ltd, to High court in Kampala.
Three former Members of Parliament on Friday took their fight over ownership of their company, M/S NALEA General Merchants Ltd, to High court in Kampala. 

William Sitenda Ssebalu, former MP for Kyandodo County West and Richard Mukula, former MP for Bungokho North have sued Tom Kayongo, former MP for Rubaga North accusing him of changing the composition of board of directors of their company. Kayongo reportedly did this by excluding the duo as co-directors before bringing on board non-founding members.

M/S NALEA General Merchants Ltd deals in various businesses ranging from importing and exporting new and used cars, supplying general merchandise to supplying stationery.

Ssebalu and Mukula say that on January 6, 2012, Kayongo, without their knowledge and permission, purported to call a company meeting and changed the board of directors and caused himself and other non-shareholders of the company to be entered in the registrar of members of the company.

The two former MPs in their complaint contend that because of this illegal change in the ownership, Equity Bank where their company accounts are, has continued blocking their funds meant to run the company ever since Kayongo purported to be the managing director.

Court records show that at the incorporation of the company about three years ago, there were four founding members with each owning 25 shares.

They include; William Sitenda Ssebalu, Richard Mukula, Tom Kayongo and Avitus Tibarimbasa.Tibarimbasa, also a former MP for Ndorwa West in Kabale district, died of a heart attack just over two weeks ago.

In his affidavit in support of the suit, Ssebalu denies giving any go ahead to Kayongo by signing on any transfer certificate to become the company’s managing director or his colleagues to become members of the company.  

Through their lawyers of M/S Semuyaba, Iga and Co Advocates, the former MPs, now want court to remove Kayongo from the purported position of the managing director before declaring all his purported dealings he has had together with his colleagues null and void.

The duo also wants the court to maintain the original status of the company by reflecting its proper membership as indicated above with each of the four founding members owning 25 shares.

Court is yet to summon Kayongo to file in his defense as per the allegations before a hearing date can be fixed.

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