CMA still wants Kiereini out of listed firms

September 6, 2013
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CMA acting chief executive Paul Muthaura maintained that individuals who wanted to appeal any decision made by the authority's board should have done so to the board/FILE
CMA acting chief executive Paul Muthaura maintained that individuals who wanted to appeal any decision made by the authority’s board should have done so to the board/FILE
NAIROBI, Kenya, Sep 6 – The Capital Markets Authority (CMA) has appealed against a High Court ruling that nullified its decision to bar Jeremiah Kiereini from sitting on boards of publicly listed companies.

On August 22, 2013 Justice David Majanja reversed CMA’s decision to block Kiereini from holding directorship of any listed company at the Nairobi Securities Exchange (NSE) together with six other directors, after they were accused of poor corporate governance at CMC Holdings.

However CMA says it was not only dissatisfied by the court ruling, but also aggrieved, adding that it had followed all the laid down procedures before blocking the directors.

CMA acting chief executive Paul Muthaura maintained that individuals who wanted to appeal any decision made by the authority’s board should have done so to the board and not the Judiciary as Kiereini did.

“The authority resolved to appeal against Justice Majanja’s decision as it believes that it has a strong and arguable appeal with good chances of success. The CMA has simultaneously applied under a certificate of urgency for a stay of execution of the judgement pending appeal of the High Court decision,” Muthaura said.

He argued that the High Court did not take into consideration evidence that had been submitted by CMA on the petitioner’s right to be heard under Article 47 of the Constitution.

“Kiereini did not ask the court to consider the fact that he had not been heard by the board and the CMA was not given an opportunity to provide any arguments in respect of the arguments made on the jurisdiction of the board committee which formed the basis of Justice Majanja’s decision,” Muthaura said.

He further stated that the High Court decision was prejudicial to the CMA particularly considering that the court found that the board had properly delegated its function to the board committee.

He also said there was no legal provision which required Kiereini to be accorded several hearings, particularly where he had waived his right to be heard.

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