Uganda Christian University School of Law Business Associations I Course

Uganda Christian University School of Law Business Associations I Course

UGANDA CHRISTIAN UNIVERSITY, MUKONO

FACULTY OF LAW

THIRD YEAR BACHELOR OF LAWS

Course Title:  LAW OF BUSINESS ASSOCIATIONS I      Credit Hours: 5.0

Course Code:  BLAW 3103                                                              Core

Contact Hours:  5.0 per week

Course Aim:

To facilitate students to understand the main principles, rules and practice in company law in Uganda and how they are applied in the world of business.  The course also aims at enabling students to appreciate the various business organizations in Uganda, investment laws and procedures.

 

Course Objectives:

By the end of the Course, you should be able to:

  • Demonstrate an appreciation of the main principles and procedures in company law;
  • explore the basic principles of corporate governance in Uganda;
  • Locate the major laws, policies and best practices relating to business organisations in Uganda;
  • Develop critical thinking and problem solving skills about any concept of company law;
  • Analyse and discuss policies that affect business associations in Uganda in comparison with other jurisdictions;
  • Advise on matters of incorporation and management of companies and other business organizations;
  • Apply the knowledge acquired in practical situations.

 

Course Content:

This course will focus on the following aspects:

  • Formation of a company and the various formalities involved;
  • Types of companies;
  • Memorandum and Articles of Association;
  • Registration of companies, including companies incorporated outside Uganda – fees and duties payable; Procedure for NGOs registration.
  • Corporate personality and consequences of incorporation;
  • Ultra vires doctrine, its modification and abolition of the constructive notice doctrine;
  • Pre-incorporation transactions;
  • Lifting the veil of incorporation;
  • Management of companies: Shareholders, Meetings of the company, notices, quorum, voting and shareholders’ rights;
  • Directors of the company: Appointment, qualifications, removal, duties and their enforcement;
  • The Indoor management rule.

 

Learning Outcome:

The course serves to bring the students into full appreciation of the application of the principles of company law and partnership law in Uganda and to also equip the students with knowledge of these principles as applied and interpreted by the courts of law and in daily business activities.  Students should be able to develop an understanding of the principles of corporate governance in Uganda, East Africa and other Common Law jurisdictions.

 

Course Methodology:

The Business Associations course shall be taught in two semesters as Business Associations I and Business Associations II.  The course shall be conducted mainly through:

  • Interactive Lectures and Tutorials.  During the course, a number of company law and partnership law principles as well as principles relating to other forms of business organizations and cases shall be discussed.  You shall note the principles discussed in class and shall be required to develop a critical analysis of company law concepts and issues and be able to apply them in solving company law issues around you.
  • Part of the learning shall be through group discussions and presentations (You may be placed in any group and any member of the group may be called upon to present);
  • Occasionally we may have Guest Speakers/Guest Lectures;

 

 

Assessment:

You will be assessed in various ways during the course of the semester.

  • Coursework shall be assessed out of 30 %. This will comprise a written take-home test that will account for 20 %;  Regular attendance and active participation in the Lecturers and Tutorials will account for up to 10%.
  • The final written exam shall account for 70% of your total grade.

You must present original works as copying, cheating, plagiarism or other academic malpractice shall lead to disqualification of the student from the course. 

You are strongly advised to actively participate in all the discussions.  Inactivity or lack of participation shall attract a negative assessment.  You are also required to attend all lectures and tutorials regularly and consistently as absenteeism or late coming shall be penalised.  You are required to carry out your own research in the subject and to prepare in advance for the discussions in the classes.  Your incompetence shall be treated with the contempt it deserves.

 

 

Faith in Teaching:

As student lawyers, you are encouraged to ensure upright living well grounded in morality and spirituality.  Business law impacts on peoples social, economic, cultural, political and legal lives.  UCU aims at training lawyers with sound spiritual lives.  Where relevant, references to the Bible shall be made during the class.  Classes shall commence and end with a prayer (whenever possible).  We aim at producing lawyers who are well versed with the legal principles but can practice law in a contemporary world without compromising their spiritual life and the fear of the Lord (which is the beginning of wisdom).

 

KEY TEXT BOOKS:

 

D.J BAKIBINGA:                 Company Law in Uganda, Fountain Publishers, 2001 (available in the UCU Law Library). Also look out for the 2012 Edition.

 

Paul L. Davies:                        Gower & Davies’ Principles of Modern Company Law: Thomson, Sweet & Maxwell, 7th Edition, 2003 (available in the UCU Law Library)

 

L.S SEALLY                          Cases and Materials in Company Law (2001) (available at UCU Law Library)

 

R.R Pennington                      Pennington’s Company Law, Butterworth,4th Edition (1979).

 

Cary Eisenberg:                       Cases & Materials on Corporations, 5th Edition Abridged, Foundation Press, 1984 (available in the UCU Law Library)

 

Keith Walmsley                      Company Law Handbook, 20th edition , LexisNexis, Butterworths, 2006 (available in the UCU Law Library)

 (Consultant Editor)

 

(PLEASE READ THESE MATERIALS CAREFULLY AS SOME OF THE CONTENT WAS AFFECTED BY THE COMPANIES ACT, 2012)

 

KEY STATUTES:  

– Companies Act, 2012, Act No. 1 of 2012

–  Insolvency Act, 2011, Act No. 14 of 2011

– Partnership Act, 2010, Act 2 of 2010

– Companies (Government and Public Bodies Participation)(Valuation) Regulations SI 111-1.

– Companies Winding-Up Rules, SI 110-2

– Statutory Instruments 71-1

– The Capital Markets Authority Act, Cap 84 (as amended)

–  Stamps Act, Cap 342

–  Investment Code Act, Cap 92

– Non-Governmental Organisations Registration (Amendment) Act, 2006.

 

Law Reports

The Uganda Commercial Law Reports [1997-2001]; [2002-2004]

High Court Bulletin

The Uganda Law Reports

East African Law Reports

All England Law Reports

WLR

Chancery

Kings Bench

 

 

 

 

SEMESTER I

I-  HISTORICAL BACKGROUND: [Week 1]

 

Paul L. Davies                         Chapters 1 and 3

 

Bakibinga                                Chapter 1

 

CASES:

Edmunds v. Brown & Tillard (1668)1 Lev 837

Katate v. Nyakatura (1956) U.L.R 47

Mengo Builders & Contractors Ltd. v. Kasibante (1958) E. A 591

Salomon v. Hamborough Co. (1971) 1 Ch. Cas 204

Salomon v. Salomon & Co. Ltd (1897) A.C 22

 

II-  FORMATION OF A COMPANY [Week 2]

Formalities and requirements

 

STATUTORY PROVISIONS:

 

                                                Ss 4 – 48, 115 – 131; Second Schedule; Tables A,B,C,D,E, & F of Companies Act, 2012;  The Companies (Fees) Rules SI 110-3; Order 38 Rules 3 & 4 Civil Procedure Rules SI 71-1.

 

BOOKS:

Paul L Davies                          Chap. 4

Bakibinga                                 Chap. 3

CASES:

B.H Sakhani & Anor v. P.H Lakhani Civ. App. No.23/75 (EACA)

Bannax Ltd. v. Mullika (1989) KALR 138, HCCS 184/88

In the matter of an Application by A. Abanya Company Cause No.1/1997

In the matter of Naama Coffee Works Company Cause No.2/1991 S.C

In the Matter of Allied Food Product Ltd. [1978] H.C.B 294

London Overseas Trading Co. Ltd v. The Raleigh Cycle Co. Ltd.[1959] E.A 101

Lutaaya v. Gandesha &Anor (1986) H.C.B 47

Mawogola Farmers & Growers Ltd. v. Kayanja & Others  (1971)E.A 272

Nampeera Trading Co. Ltd v. Yusufu Semwanje & Anor [1974] HCB 184

R v. Registrar of Companies Exparte More [1931] 2. K.B 197

Re Kasiita Estates Ltd.(982) H.C.B 102, Companies Cause 3/82

Re Sekiumba Estate Ltd.(1978) H.C.B 285, Companies Cause 1/1978

Salomon v. Salomon & Co. Ltd (1897) A.C 22

In the matter of Kavuma Motors Ltd. Companies Cause No. 6/1989

 

III.-   CORPORATION PERSONALITY [Week 2-3]

Consequences of incorporation

STATUTORY PROVISIONS:

 

                                                Ss 4, 50 – 53, 55-59, 161  of Companies Act, 2012

Order 29 rr.1 &2 Civil Procedure Rules SI 71-1

 

BOOKS:

Paul L. Davies                         Chap. 2

Bakibinga                                Chap. 2

KATENDE                             Chap 2

 

ARTICLES:

BERLE                                   “The Theory of Enterprise entity”, 47 Col L.Rev. 343

GOLDHART                          “Legal Personality”, (1971) 27L.Q.R 90

KHAN-FREUND                  “Some Reflections on Company Law Reform”(1944)                                               7 M.L.R

POWLES                                “The see-through Corporate Veil (1977) 40 M.L.R 339

 

SCHMITTOFF                       “The Wholly Owned and the Controlled Subsidiary” (1978) JBL 218        

WEDDERBURN                   “Corporate Personality and Social Responsibility: The Problem of Quasi-Corporation”, (1965) 28

                                                M.L.R 62

 

CASES

Christian Akena-Onapa v. Francis Otile & Yeko Wanton-Acato, Companies Cause No. 36 of 2008

Nsangiranabo Erasmus t/a Nsangira Auctioneers and Court Bailiffs vs. M/S Associated Properties Ltd, Jagdshchangra Jashibhai Patel and Bhupendera Jashibai [2008] ULR 640

Crane Bank & Others v. Mururama Limited & Others [2002-2004] The Uganda Commercial Law Reports 154

Salomon v. Salomon & Co. (1897)A.C 22

Sentamu v. U.C.B & Anor (1983) H.C.B 59

Joseph Kakooza v. Ethiopian Airlines Ltd.(1982) H.C.B 3

Dennis Njemanze v. Shell B.P Port Harcourt (1966) ALL NLR 8 (SCN)

Kajubi v. Kayanja [1967] E.A 301

Kampala City Council v. Apollo Hotel Corporation (1988)H.C.B 77

Katate v. Nyakatura (1956)7 ULR 47

Kintu v. Kyotera Coffee Growers Ltd(1976) H.C.B 336

Lalindas & Co.Ltd v. Attorney General Misc. App. No.58 of 1987

Catherine Lee v. Lee’s Air Farming Ltd.[1961].A.C 12

In the Matter of Uganda Polybergs Ltd. Co Cause Bo.2/1999 (Okumu Wngi Ag J.)

Macaura v. Northern Assurance Co. Ltd & Others [1925]A.C 619

Mawanda v. Alum & Others Msic. App. No. 58 of 1987

Mohamed Saad v. Pan Africa Trading Co. Ltd. HCCS No.361 of 1989

United Assurance Co. Ltd. v. Attorney General, Civil Appeal No. 1 of 1986

Wani v. Uganda Timber & Joiners Ltd. HCCS No. 989 of 1972

Mugenyi & Co. Advocates v. Attorney General Civil Apeal No.43/1996 pp368-195

Smith v. Anderson (1880) 15 Ch.D247

 

FAM Internal Ltd & Anor v. Mohamed Fatin Civil Appeal No. 16/1993

 

W.E Kiwallabye v. UCB (1994) IV KALR 8.

The Kampala Cotton Co. Ltd. v. Madhvani (1954) 21 EACA 129

Hindu Dispensary v. Patwa [1958] EA 74

 

IV-   MEMORANDUM AND ARTICLES OF ASSOCIATION [week 4] The company constitution, contents, alterations, interpretation

 

 

STATUTORY PROVISIONS:

Ss 7 – 17, 51, 52, 53, Companies Act. 2012

                                                Order 38 Civil Procedures Rules, SI 71-1

 

BOOKS:

Paul L. Davies                         Chap. 3

Bakibinga                                Chaps. 4 &5

KATENDE                             Chap.2

PENNINGTON                      Chap. 4                       

 

 

CASES:

De Beers Consolidated Mines Ltd. v. Howe (1906) A.C 3455

Hindu Dispensary, Zanzibar v. N. A Patwa & Sons[1958] E.A 74

Lennards Carrying Co. Ltd v. Asiatic Petroleum Co. Ltd (1915) E.C 705

John Hensall (Quarries) Ltd v. Harvey (1965)2 Q.B 233

Kahinde v. Registrar of Co.’s (1979) 3 LRN 213

Guiness v. Land Corpn of Ireland (1882)2 ChD 349(Bowan L.J)

R v. Registrar of Companies Ex Parte Moore (1931)2KB 197

Bowman v. Secular Society Ltd [1917] AC 406

V-   PRE-INCORPORATION TRANSACTIONS [Week 5]

STATUTORY PROVISIONs

                                                Ss 54 Companies Act, 2012

BOOKS:

Paul L. Davies                         Chap.5

Bakibinga                                Chap. 3

PENNINGTON                      Chap.4

 

ARTICLES:

 

CROSS                                   Pre-Incorporation Contracts (1971) 87 L.Q.R 367, Contracts, Vol.7 No.1 (1981) Commonwealth Law Bulletin

 

MACKENZIE                        The Legal Status of the Unborn Company (1973) 5 N.Z.V.L.R 211

 

 

CASES:

Black v. Smallwood (1966) 17 C.L.R 52

Kelner v. Baxter (1866-67) L.R 2 C. P 174

Motani v. Thobani (1945) 12 EACA 37

Price v. Kelsall [1957] E.A 752

Re House of Garments, Companies Cause No. 2 of 1972 (High Court of Uganda)

Re National Motor Mail-Coach Co. Ltd [1908] 2 Ch.515.

Steven Obiro v. R [1962] EA 61

Central Masaka Coffee Co. v. Masaka Farmers & producers Ltd (1991) ULS LR 22

Mawagola Farmers & Growers Ltd v. Kayanja & Others (No. 2) [1971] EA 272

Re Darby [1911] 1 KB 95

 

PROMOTERS

Section 4, Companies Act, 2012

Books:

Paul L. Davies                         Chap. 5

Bakibinga                                Chap. 3

 

 

ARTICLES:

BAXTER                                Pre-Incorporation Contracts and Liability of Promoter,(1975) Vol. 49, No. 11 , Aust, L.J 635

CASES:

Erlanger v. New Sombrero Phosphate Co. (1878) 3 App. Cas. 1218

Gluckstein v. Barnes [1900] A.C 240

Kololo Curing Co. Ltd v. West Mengo Co-operative Union Ltd.(1981) H.C.B 60, HCCS 276/80.

Salomon v. Salomon & Co. (1897) AC 22

Twycross V Grant (1877) 2 C.B.D 469

 

VI-  LIFTING THE VEIL [Week 9]

STATUTORY PROVISIONS:

Ss, 21, 49, 116(3), 117(4),118(3), 119(6), 128(3), 132(3), 135(3), 137(10), 138(8) etc Companies Act, 2012.

 

BOOKS

Paul L. Davies:                        Chap. 8

Bakibinga:                               Chap. 2

 

ARTICLES:

CORN                                     Lifting the Veil in the Company Laws of the European Countries (19630 12 Int’1 L.Q .89

SAMUELS                             Lifting the Veil (1964) J.B.L 107

SCHIMITTOFF                      The Wholly-Owned and the Controlled Subsidiary (1978) J.B.L 218

SCHIMITTOFF                      Salomon in the Shadow (1976) J.E.L 305

POWLES                                The See-Through Corporated Veil (1977) Vol. 40 MLR 339

PICKERING                          The Company as a Separate Legal Entity (1968)31 MLR 481

 

 

CASES:                                 

Christian Akena-Onapa v. Francis Otile & Yeko Wanton-Acato, Companies Cause No. 36 of 2008

Nsangiranabo Erasmus t/a Nsangira Auctioneers and Court Bailiffs vs. M/S Associated Properties Ltd, Jagdshchangra Jashibhai Patel and Bhupendera Jashibai [2008] ULR 640

Abbey Malvern Wells Ltd. v. Ministry of Local Govt & Planning (1951) Ch 728.

D.K Construction Company Ltd & Another v. Barclays Bank of Uganda Ltd [2002-2004] The Uganda Commercial Law Reports 201

Jarvis Motor (Haroow) Ltd v. Corrabbott(1964) 1 WLR 1101

Gasque v. Commissioners of Inland Revenue (1940) 2 KB 80

Gilford Motor Co. Ltd v. Horne (1933) Ch. 935

Jones v. Lipman [1962]1 WLR 832

Modokayo Oneka v. Wines & Spirits (U) Ltd & Annor [1974] H.C.B 263

W.E Kiwalabye v. UCB (1994) IV KALR 8 Kato J.

 

 

 

VII-   ULTRA VIRES DOCTRINE [Week 6]

Its modification & abolition of the constructive notice doctrine

STATUTORY PROVISIONS:

Sections 4, 7(1)(c), 7(5), 10(1)(e), 51, 52, 53, Companies Act, 2012

 BOOKS:

Paul L. Davies                         Chap. 7

Bakibinga                                 Chaps. 3,11,15, 18

PENNINGTON                      Ch.4

MUSISI                                  Ch.10

KATENDE                             Ch.4

 

 

ARTICLES:

 

BAXTER                                Ultra Vires and Agency Untined (1970) 28 Camb, L.J 280

 

DAVIE                                   “Alteration of the Company’s Objects and the Ultra Vires Doctrine”(1974) 99 Law Quarterly Review 74.

 

MUSISI                                  “The Ultra Vires Doctrine in Company Law: A Century of Attempted reforms”(1982) Vol. 1 No. Unical Solictor,22.

 

SCHIMITTOFF                      The Harmonization of Europe’s Company Laws(1972)

 

CASES: (Historical perspective)

Ashbury Railway Carriage & Iron Co. Ltd V Riche (1874-75) L.R. 7 H.L 653

Bell Houses Ltd V City Wall Properties Ltd (1966) 1 Q.B 207

Re John Beauforte (London) Ltd. (1953) Ch. 131.

Cotman V Brougham (1918) AC 514

Eastern Countries Rly V Hawkes (1855) 5 H.L.C 331

Mawanda & Ors. V Alum & 2 Ors.  1987

Naks Ltd V S. Kyobe –Senyange [1982] H.C.B 52 HCCS 457/79

Re David Payne (1904) 2 Ch. 608

Re Introductions Ltd [1970] 1 Ch. 199

Re New Finance & Mortgage Co. Ltd (1975)

Sinclair V Brougham [1914] A.C 398

 

  • MANAGEMENT OF COMPANIES: SHAREHOLDERS AND DIRECTORS

Shareholders, their rights, meetings, notices, quorum, procedure for voting

MEETINGS [Week 7-8]

Statutory Provisions

Sections 137 – 153, Section 14 & Table F, Companies Act, 2012

 

Books:

Paul L. Davies:          Chaps. 15, 19

Bakibinga:                  Chap. 16

 

Cases.

Re Kibuye United Vendors (U) Ltd [2001-2004] The Uganda Commercial Law Reports 296

In the Matter of Naama Coffee Works Ltd Co-Cause No.2/ 1991 Ntabgoba P.J

 

Bugerere Coffee Groups Ltd v. Sebadduka [1970] E.A 147

Company v. Petronium Clothing Co. Ltd [1978] I MLR 72

In the Matter of Uganda Eyeddembe Publications (1973) Ltd, Companies Cause No. 9 of 1979 High Court of Uganda.

Kaye v. Crondon Tranways Co.(1898)I Ch 358

Re Air Rep-International Ltd; Companies Cuase No. 3 of 1984.

Re E1 Sembrere Ltd(1958) Ch. 900

Taupo Totara Timber Co. Ltd v. Rome (1970) 3 WLR 466

Tiessen v. Henderson (1899)I ch 861

United Assurance Co. Ltd v. Attorney General, Civ. Appeal No. 1 of 1986 (Supreme Court)

Wagaba v. Butambala United growers Ltd. 1966(2) ALR Comm. 163

Wanendeya v. Coffee Marketing Board 1975 HCB 266

 

Voting at general meetings

In the matter of Naama Coffee Works (supra)

Greenwell v. Porter [1902] 1 Ch. 530

Peel v. London & North Western Rly Co. (1907) 1 Ch.5

 

Member’s  Informal meetings

Parker & Cooper Ltd v. Reading (1926) 1 Ch. 975

 

Director’s Remuneration

Re George Newman & Co. Ltd (1895) 1 Ch. 674

 

Directors- Definition

Cuisar Ltd. v. C.M.C Ltd, Commonwealth Law Bulletin Vol. 4, October 1978

New South Wales Corporate Affairs commission & Drysdale, C.L.B Vol. 5, No. 1 Jan. 1979.

R V Camps (1962) E.A 403

 

 

 

Indemnification

 

Highlands Commercial Union v. Jamal [1975] E.A 641

 

Taupo Totare Timber Co. v. Rome (1977) MLR 466

 

The James Seddon (1866) L.R 1 A & E 62

 

Removal

  1. Kintu v. Kyotera Coffee Ltd [1976] HCB 336

 

Bugerere Coffee Growers Ltd v. Sebadduka[1970] E.A 147

 

Bushall v. Faith [1970] A.C 1099

 

Kyaggwe Farmer Assoc. Ltd & Ors. v. E Kafeero & Ors [1975] HCB 97

 

Linclon Mills (Australia)ltd v. Gough [1964] V.R 193

 

Nampeera Tradidg Co. Ltd v. Yusufu Serwanje 7 Aner [1974] HCB 212

 

Raupol Tota & Timber Co. v. Rome [1977] 2 ALR 466

 

Re Allied Food Products Ltd (1978) HCB 294, Companies Cause No. 4 of 1977

 

Proceedings of Directors

Antonic Wagaba & 3 others v. Micheal Matovu & 6 Others, H.C.C.S 792 of Barron V Porter [1914] 1 Ch. 895

Industrial coffee Growers (Uganda() Ltd, v. Tamale,H.C.C.S 215 of 1963

Pulbrook v. Richmond Consolidated Mining Co. (19780 9 Ch. D 610

Re Homer District Consolidated Gold Mines Ltd.(1888) 39 Ch. D 546

 

Delegation of Director’s Powers

Ellis v. N.G Bailey & Co. (E.A) 626

Halrod Holdsworth & Co. (Wakefield) Ltd V D Caddies I WLR 350

 

 Directors Versus Shareholders

Allexander Ward v. Samyag-Navigation Co. Ltd (1975) I WLR 673

Antometic Self-Cleaning Filter Syndicate Co. Ltd v. Cunninghame (1906)

John Shaw &Sons(Salford) Ltd. v. Shaw [193] 2 KB 113

Marshall’s Valve Gear Co. Ltd v. Manning Wardle & Co. Ltd (1909) 1 Ch 607

United Assurance Co Ltd v. Attorney General, Civil Appeal no. 1 of

 

The Indoor Management Rule

Royal British Bank v. Tarquand (1843-60 ALL ER 435; 119 ER 886, Ex Chamber

Emco Plastica Internal Ltd v. Freeberne [1971] E.A 433

Freeman & Lockyer v. Backhurst Park Properties (Mangal) Ltd. [1964] 2 Q.B 480

Irvine v. Union Bank of Australia (1877) 2 App Cas 266

Mahony v. Holyford Mining Company (1875) LR 7 HL 869

Mercantile Bank of India v. Chartered Bank of India [1937] 1 ALL ER 231

Kenya Hotel Project Al v. Magina Sing Contractors, Civ. App. No. 32 of 1976(EACA)

Mahony v. East Holyford (1875) 6 E1 327, 119 E.R 886

Universal Electrical & Plumbing Contractors v. Kapkwata Saw Mills Ltd. HCCS No. 56 of 1982.

Liability of the Company for the Acts of its Directors – Sections 51 & 52 Companies Act, 2012

  1. Kintu v. Kyotera Coffee Growers [1976] HCB 336

Bugerere Coffee Growers Ltd v. Sebadduka [1970] E.A 147

Fribank’s Executor v. Humphreys (1886) E.A 660

Nampeera Trading Co. Ltd v. Semwanje & Anor [1974] HCB 212

Richmond v. Bromson (1914) 1 Ch 968

Walugembe, Lugobe & Co. Ltd v. Jiwa H.C.C.S 349 if 1967

Illinois Control Insurance v. Langham 70 Ohio State 3d 512

 

Liability of the Company for the Acts of its Secretary

Panorama Developments (Guildford) Ltd v. Fidelis Furnishing Fabrics Ltd[1971] 2 Q.B 711.

IX-  DUTIES OF OFFICERS AND MEMBERS OF THE COMPANY [Week 9-10]

STATUTORY PROVISIONS:

Ss 185 – 233, 247 – 250, Table F, Articles 75-127 Table A Companies Act.

 

BOOKS:

Paul L. Davies:                       Chaps 14, 16, 15, 17 & 18

Bakibinga:                               Chaps. 11,12,13,14, & 15

PENNINGTON                      Chap. 14 & 16

KATENDE                             Chap. 7

MUSISI                                  Chap. 13

 

ARTICLES:

ARNOLD                               The Neutrality of an Auditor(1959)26 The Solicitor.

BAXTER                                The Modern Company Auditor: A Nineteenth Century Watchdog”(1970) 33 M.l.R 413

BAXTER                                Challenge to removal of a Director (1973) Vol. 47, No.10 Aust. L.J 615

CARTOON                            “Compensatory Payments to Directors for Loss of Office: The Golden Handshake” (1978) 94 LQR 487

COLLIER                               Director’s Duties conflict of Duty and personal interest(1972) 30 Camb L.I.22

COLLIER                               Authority of a Company’s Secretary to Enter into Contracts on its Behalf, (1972A) Camb. L.J.44

EVANS                                  Quantum Meruit and the Managing Director(1966),29 MLR 688

JONES                                    Unjust Enrichment and the Fiduciary Duty of Loyalty (1968) 84 L.Q.R 472

LOSS                                      The Fiduciary Concept as Applied Trading by corporate “Insiders” in the United States: (1970) 33 M.L.R 34

MEDNICH                             “Accountants’ liability: Coping with the Stampede to Court Room”, Journal of Accountancy Sept. 1987 p.113

MORSE                                  Insider Trading Gulf Sulphur (1978) J.B.L 183

MUSISI                                  “Director’s Duties towards Shareholders: A New Horizon”, Mimeo, Makerere University (1980)

MUSISI                                  The Legal Liability of Auditors to the Company and its Shareholders, Seminar, Paper, Kampala, 1991.

PARKINSON                        “The Modification of Director’s duties”(1981 J.B.L 335)

RIDER                                    Partnership Law and Its impact on Domestic Companies 1979 Camb L.J 148

RUBIN                                   The Director as Employee of the Company (1978) J.B.L 328

SCHIMITTOFF                      Passive Director Liable for Contempt (1973) J.B.L 43

SEALLY                                The Director as a Trustee (1967) Camb, L.J 83

TOFFE                                    Majority Rule Undermined? (1977) 40 MLR 71

 

Promoters:

Erlanger v. New Sombrero Phosphate Co.(1878) 3 App. Cas 1218

Gluckstein v. Barnes (1900) A.C 200

Jacobus marler Estates Ltd v. Marler (1913) 85 L.J.P.C 167

Kololo Curing Co. Ltd v. West Mengo Co-operative Union Ltd.(1918)H.C.B.60, HCCS 276/80

Re Leeds Hanly Theatres of Varieties Ltd[1902] Ch.809

Salomon v. Salomon & Co. (Supra)

Twycross v. Grant (1877) C.B.D 469

 

 

Directors: General Principles

Mawanda & Ors, Misc. App. No. 15 of 1987

Reg v. Inmann (1966) 3 WLR 567

Re City Equitable Fire Insurance Co. Ltd (1925) Ch.407

Re Denham & Co. (1883)25 Ch 752

Williams v. Gier Sc of Delaware (1996) 671 2nd 1368

 

Duty of Good Faith

Allev v. Hyatta (1914) 30 T.L.R 444

Bamford v. Bamford [1969] 2 W.L.R 1107

Gething v. Kilner (1972) Ch. 254

Hogg v. Cramphorn Ltd. [1967] Ch. 254

Howard Smith Ltd v. Ampol Petroleum Ltd (1974)2 WLR 689

Percival v. Wright (1902) 2 Ch 421

Re Smith & Fawcett Ltd. (1942] Ch 304

 

Company’s Property

Cook V Deeks (1916) 1 A.C 554

Re George Newman & Co. (1895)1 Ch 674

Wallesteiner V Moir (1974) 1 WLR 991

Helly Hutchinson V Bryhead Ltd (1968) 1 Q.B 549

Lindergen V L & P Estates Ltd (1968) Ch. 572

 

On Secret profits

Industrial Development Consultants Ltd V Cooley [1972] 1 W.L.R 443

Regal (Hastings) Ltd V Gulliver(1967) 2 A.C 134

 

Modification of Director’s duties

Bamford V Bamford (1969) 2 KLR 1107

Customs & Excise V Hendson Alpha Ltd. 1 LL ER 969 [1981]2 WLR 791

 

Auditors

Re Kingston Cotton Mill Co. (No.2) (1896) 2Ch 279

Re City Equitable Fire Insurance Co.(1925) Ch 407

Formento (Sterling Area) Ltd V Selsdon Fountain Pen Co. Ltd (1958) I.W.L.R 45

Secretary of State for Trade & Industry V Hart [1982] WLR 481[1982]1 ALL ER 817

 

Secretary

Barnet, Hoares & Co. South London Tramways Co.(1987) 18 QBR 815

George Whitechurch Ltd V Cavanagh (1902) A.C 177

Ruben V Great Fingal Consolidated (1906) A.C 439

Panorama Development (Guildford) Ltd V Fidelis Furnishing Fabrics Ltd.(1971) 2 WLR 440

 

Members

North-West Transportation Co. V Beatty (1897) 12 App. Cas. 589

Brown V British Abrasive Wheel Co. Ltd [1919] 1 Ch. 290

Sidebottom V Kershaw, Leese & Co. Ltd (1920)1 Ch, 154

Clemens V Clemens Bros Ltd. (1976) 1 ALL ER 268

Daniels V Daniels (1978) 2 WLR 73

 

XI-   ENFORCEMENT OF MEMBER’S RIGHTS [Week 11]

STATUTORY PROVISIONS

 

                                                Ss 172 – 184, 247 – 250 Companies Act, 2012

                                                Order 38. Civil procedure Rules SI 71-1

 

 

Paul L. Davies                         Chaps. 17, 19, & 20

Bakibinga                                Chap. 15

KATENDE                             Ch. 8

MUSISI                                  Ch. 17

PENNINGTON                      Ch. 18

 

ARTICLES

 

BOYLE                                  The Derivative Action in Company Law (1969) JBL 120

CHESTERMANN                  The Just and Equitable Winding up of Small Companies, (1973) MLR 129.

 

GOODMART                         The Protection of Minority Shareholders in Private Companies (1959) 5 LQR 38

 

HORNSTEIN                         The Shareholder’s Derivative Suit in the U.S (1971) J.B.L 282.

 

LATTY                                   Minority Shareholder protection in American Corporation Law (1957) J.B.L 110, 224, 337.

LEIGH                                    Just and Equitable Winding Up, (1972) 88 LQR 468

 

MASON                                 Ratification of the Directors Acts: An Anglo-Australian Comparison (1978) 41 MLR 161.

 

MUSISI                                  Minority Shareholders’ Protection: The Battle Still Rages, 1984 Vol.2 No.1N.UL.L.J, 199

 

MUSISI                                  S.75 of the 1980 English Companies Act: Another Comment 1983(1) U.S 18

 

PRENTINCE                          Winding up on Just and Equitable Ground: The Partnership Analogy (1978)89 LQR 107

 

PRUNTY                                The Shareholder’s Derivative Suit: Notes on Its Derivation 32 N.Y.U.L Rev. 980.

 

RIDER                                    Amiable Lunatics and the Rule in Foss V Harbottle (1978) Camb.L.J.270.

 

SUGARMAN                         The Minority Shareholder,(1975 91 LRQ 482

 

WEDDERBURN                   Shareholder’s Rights and the Rule in Foss V Harbottle (1957) Cam.L.J and (1968) Camb.L.J93

 

WEDDERBURN                   Control of Corporate Litigation (1978) 39 MLK 327

 

 

XII- LIABILITY OF DIRECTOR’S TO MINORITY FOR NEGLIGENCE [Week 12]

 

SCHIMITTOFF          Is Quorum a Minority Right? (1970) J.B.L 53

Paul L. Davies             Chap. 17,18, 19 & 20

 

CASES

At Common law

Foss v. Harbottle (1843) 2 Hare, 467, 67, E.R 189

Brown v. British Abrasive Wheel Co. Ltd (1919) 1 Ch. 290

Buikwe Estate Coffee Ltd. v. S. Kutabi [1962] E.A 328

Burland v. Earle [1902] A.C 83

Cairo Stores Ltd v. Abdu Nsereko No. 65 of 1981

Clemen v. Clemsn & Bros. ]1976] ALLER 268

Daniel v. Daniel [1978] 2 WLR 73

Edwards v. Halliwell (1950) 2 ALL E.R. 1064

Haji Twahib Kigongo v. Haji Bruhan Mugera Companies Cause No. 3 of 1986

In the Matter of Nakivubo Chemists (U) Ltd [1977] HCB 312

In the matter of Allied Food Oproducts Ltd.[1978] HCB 294

MacDough v. Gardiner (1871) Ch. 13

Mawanda & Abur & Ors. Re Gold Bank Ltd,Misc.AppN.No. 15 of 1987

Misango v. Musigire [1966] E.A 390

Nurcombe v. Nurcombe (1985) 1 ALLER 65

Prudential Assurance Co. Ltd v. Newman Industries Ltd (1979) 2 All E.R 507

Prudential Assurance Co. Ltd v. Newman Industries Ltd. & Ors (No.2) [1982]2 WLR 31, [1983] 1 ALL ER 354

Rwenzori Tea Co. Ltd v. Kelsal (1956-57) 8 ULR 204

Wallesteiner v. Moir (No.2) (1975) 2 WLR 389

 

Winding up Under the “Just and Equitable” Clause.

Re Ghelan Impex Ltd(1957) EA 197

Bentley-Steven v. Jones (1974) I WLR 638

Ebrahimi v. Westbourne Galleries Ltd [1973] A.C 360

Hang & Ors. v. Buhemba Mines Ltd(1953) 20 E.A.C.A 28

Mitha v. Mitha (1967) E.A 575

Nakivubo Chemists (U) Ltd,1977 ECB 312

Re A & B Chewing Gum Ltd (1975) I WLR 579

Re Antigen Laboratories Ltd.(1951) 1 AU E.R 110

Re E.A.J Fernandes &Anor.Misc.Cause No. 77 of 1971 (Uganda)

Re East African Tobacco Co.(1921-52) 1T L.R ® 489

Re Modern Retreading Co. Ltd (1962) E.A 57

Re Rica Gold Washing Co(1979) 11 Ch. D 36

Re Yenidje Tobacco Co. Ltd (1961) 2 Ch. 426

Loch V John Blackwood (1924) Ac 783

 

Relief Against Oppression

Salim Jamad & Ors v. Uganda Oxygen Ltd & Ors Civil Appeal No. 64/1995

Elder v. Elder & Watson Ltd. 1952 S.C 49

In the Matter of Nakivubo Chemists (U) Ltd (supra)

In the matter of Rwakati Ranchers Ltd. Companies Cause No. 1 of 1979(High Court of Uganda).

Mitha v. Mitha (1967) E.A 575

Re H.R Marner Ltd(1959) I WLR 62

Re Jermyn St. Turkish Baths Ltd.(1971) I WLR 1042

Scotish Co-operative Wholesale Society Ltd v. Meyer (1959) E.C 324

 

Government Inspection

Ellis v. N.G Bailey & Co. Ltd (1962) EA 626

In Re Armvent Ltd.[1975] 1 WLR 1979

Kasule Luyombo v. Iga Kittatta & Anor [1977] HCB 328

Re Board of Trade Exp. St. Martin’s Preserving Co. Ltd [1965]1 Q.B 603

Re Erisa Muhinda & 14 Ors. v. E.B Bwambale & Anor.(1969) Civ, Appeal No. 7 of 1969

Re Eryeza Bwambale & Co. Ltd [1977] E.A 43

Re Pergamon Press Ltd.(1971) 1 Ch.388

Re S.B.A Properties Ltd [1967] W.L.R 799
Saint Benoist Plantations Ltd v. Jean Emille Adrien Felix (1954) 21, E.A.C.A 105

 

 

Special Statutory Remedies.

Henry Kawalya v. Dan Ssemakadde Co-cause 8/1990

Ebrahim v. Tait(1935) 2 EACA 51

Kirkel v. Adams (1934) 21 EACA 26

Re B. Johnson & Co. (builders) Ltd. (1955) Ch.634

Re Bugle Press Ltd (1961) Ch. 270

Re Modern Rereading Co. Ltd (in liquidation) 1966(1) ALR Comm. 494

 

 

Enjoy your reading and good luck in your careers!!

[1] Advocate & Commissioner for Oaths: LL.M (Erasmus University Rotterdam); Dip. LP (LDC); LL.B (UCU), kiriaghe@gmail.com , +256755977337  

[2] LLB (UCU); Dip. LP (LDC)

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