Sagis owns ten percent of Krem Radio

It is a case that has been in and out of court for a loan of a hundred thousand dollars that was granted to Krem Radio by Sagis Limited fifteen years ago. Seventy-five thousand dollars of the loan was to be repaid and the remaining twenty-five should have been granted in shares. But that never happened. Sagis took Krem to court and in that first round, the Chief Justice ruled in favor of Krem in May 2008 and Sagis appealed. Subsequently, in June 2009 the Court of Appeal overturned that decision in favor of Sagis. Krem then applied for a stay of judgment until the case is heard by the Privy Council, but in a ruling today delivered by Justice Denys Barrow, the court refused a suspension of the execution of the judgment of the Court of Appeal. What this means is that Sagis now owns ten percent or fifty thousand shares in Krem Radio. News Five spoke today to attorney Elson Kaseke.

Elson Kaseke, Attorney for Sagis Limited

“The sum total of today’s judgment is that Krem Radio Limited is obliged to comply with the judgment of the Court of Appeal delivered on the nineteenth of June 2009.”

Delahnie Bain
“For the layman out there, what does this mean for Sagis?”

Elson Kaseke
“You remember that on June nineteenth 2009, the Court of Appeal delivered the judgment in favor of Sagis. If I might briefly read the order which the Court of Appeal made on the nineteenth of June, they were as follows: That Krem Radio Limited rectify its registrar of members by striking out the name of Evan X Hyde as the holder of fifty thousand shares in Krem Radio Limited and insetting in his place, the name of Sagis Limited as the holder of fifty thousand shares. That means Krem has to comply with this order right now. Secondly, that Krem Radio limited should give notice of the rectification of the registry of its members to the Registrar of Companies. Thirdly, that Krem Radio Limited should file its annual list of members reflecting that Sagis is a member, a shareholder of Krem Radio Limited. In summaries with Registrar of Companies in accordance with section twenty-seven of the companies act for the period 1999-2006, Krem now has to do this. And lastly, that Sagis is entitled as of right to all its rights and entitlements as a shareholder of Krem Radio Limited since seventeenth June 1994. Such rights include share subscription rights and Sagis Limited, as a member of Krem Radio Limited, should be entitled to its ten percent holding and to ensure that its ten percent holding has not been unlawfully diluted in any way. So these are the matters that Krem Radio is obliged, as a matter of law, to comply with as now.”

Delahnie Bain
“They applied for the stay based on what?”

Elson Kaseke
“Well, they had several grounds. They were saying Sagis was hostile to Krem, that if Sagis was admittedly the shareholder of Krem in the interim it would gain confidential business information, that if the shares are transferred to Sagis and Sagis loses an appeal to the Privy Council, then there would have to be another re-transfer of the shares back to Krem. But the Court of Appeal was not persuaded by that.”

Meanwhile, Sagis Limited argued that it has been deprived of its share holding for fifteen years and it would be unjust to keep withhold the shares even after the company won the appeal.

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