Eddies Pfugari dispute struck off the roll
THE High Court has thrown out a bid to assume directorship of Eddies Pfugari (Pvt) Ltd by the late founder Edward Nyanyiwa’s daughter, Henrietta, on an urgent basis and struck the matter off the roll.
Henrietta and Stern Mufara, who was the executor of her late mother, Midlred Nyanyiwa’s estate, had sued Eddies Pfugari, Clever Mandizvidza, and the Registrar of Companies and Master of the High Court.
They sought to have Henrietta declared a director of Eddies Pfugari, retaining 50 percent shareholding against Edward Nyanyiwa (Jnr) and an order for the respondents to convene a member’s meeting to deal with the issue within 48 hours of granting of the order.
Justice Siyabona Msithu noted how a number of material issues had been distorted by the applicants pertaining shareholding rights before striking the matter off the urgent applications roll.
“The first applicant’s claim to directorship in first respondent was based on the erroneous supposition that the late Mildred held a 50 percent shareholding in first respondent. In any case, it was disputed that the first applicant was ever appointed director of first respondent,” Msithu ruled.
“The failure to disclose the first applicant’s summons claim for a declaratur in my view makes the present application inessential.
“The non-disclosures had the effect of creating material disputes of fact once first and second respondent filed their opposition revealing the genesis of the dispute between the parties.
“This court would have been misled had it not invited the parties to appear and argue their cases.
“I find it needless to traverse the merits of the application and the remaining preliminary objections. The application must fall on this premise.”
The court heard that Henrietta is one of the late Pfugari’s children with the late Mildred Nyanyiwa, while Edward Jnr was born out of his first marriage.
The court heard beneficiaries of Mildred Nyanyiwa’s estate elected Hanrietta to the board to represent her late mother’s interests.
Hanrietta’s appointment to become a director of Eddies Pfugari was said to be long overdue and ought to be addressed urgently to prevent any prejudice or continued violation of the law.
“Beneficiaries of Nyanyiwa’s estate are agitated by the second respondent’s board’s lack of accountability, particularly when it comes to disposal of company assets and utilisation of funds generated by the company, and purporting to run or take part in the winding up of the deceased’s estate,” Mufara had submitted during the application.
“As that process is yet to be finalised it is necessary that the late Nyanyiwa’s beneficiaries be involved in the day to day management of the company through the appointment of a director of their choice on the first respondent (Eddies Pfugari).”