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Madison Investment, Property And Advisory Company Limited V Peter Kanyinji [2018] Zmsc 348 (Scz Selected Judgement No. 48 Of 2018), Ntemena Mwanamwambwa
Madison Investment, Property And Advisory Company Limited V Peter Kanyinji [2018] Zmsc 348 (Scz Selected Judgement No. 48 Of 2018), Ntemena Mwanamwambwa
SAIPAR Case Review
The case at hand brings to the fore, a number of important matters relating to the treatment of a company which has a controlling shareholding in another while at the same time belonging to the same group of companies as the latter.
The case is particularly important to the jurisprudence of Zambian Company law as it endorses the sacredness of the veil over group structures in maintaining investor confidence and preventing the economic liabilities that would unsuspectingly befall local as well as multinational companies operating within a group structure.
Madison Investment, Property And Advisory Company Limited V. Peter Kanyinji Scz Selected Judgment No. 48 Of 2018, Chanda Chungu
Madison Investment, Property And Advisory Company Limited V. Peter Kanyinji Scz Selected Judgment No. 48 Of 2018, Chanda Chungu
SAIPAR Case Review
The Managing Director of Perfect Milling Company was entitled to 25% gratuity of his basic salary at the end of his term as Managing director. However, when he launched a claim against Perfect Milling Company, the company was in bankruptcy and unable to pay. He then sued Madison Investment, claiming that they operated as a single economic unit under the Madison Group of Companies.
The High Court in a judgment delivered by Banda-Bobo J (as she was then) held that notwithstanding the principle that companies have a separate legal identity, the court is empowered to pierce it in certain circumstances …