On Friday, Commercial Court Judge Justice Daniel Musinga, refused to allow the petitions filed by Tatu City’s minority shareholders to have the company wound up or they be bought out by the majority shareholders.
In his ruling, Justice Musinga said minority shareholders had acted unreasonably in petitioning the court to wind up the company when there was an alternative remedy available to them, through sale of their stake to the other shareholders.
“We are grateful that the High Court has finally heard and determined the winding up petitions. We are even more grateful that justice has been served and this ruling will assist in restoring investors’ confidence in the judicial system in Kenya,” the acting CEO Tatu City Arnold Meyer said.
The minority shareholders including Rosemary Wanja and Stephen Mwagiru had accused the directors and the majority shareholders of excluding them from the affairs of Tatu City.
They filed the petition in 2010 seeking to dissolve Tatu City Ltd.
The projects targets to attract residents, companies and retailers who wish to live, work and play in a modern, well-planned urban development in East Africa.
It covers over 1,000 hectares and will comprise over 22,000 residential units and approximately 2 million square metres of office, retail, light industrial spaces as well as community facilities including, public service transport interchanges, health facilities and recreational parks.
With the conclusion of the court case, the actual construction work is set to move with speed including the installation of services for the city along with the road finishes, pavements and landscaping.