URSB Sends 47-Year Shareholder Dispute to Court After Failing to Resolve

A protracted shareholder dispute, spanning almost 47 years, has reached an impasse with the Uganda Registration Services Bureau (URSB). The URSB has now forwarded the case concerning the removal of Mr. Emmanuel Katana from the records of Natural Foods Limited to the High Court for adjudication.

Natural Foods Limited, incorporated in 1976, has been embroiled in this ownership and shareholder registration conflict for decades. Mr. Katana claims he was wrongly removed from the company’s share register in 1977, a situation that has persisted through various leadership changes and attempts at resolution.

Despite engaging with the URSB on multiple occasions, the bureau has determined that it lacks the statutory powers to definitively settle the complex ownership claims and the legality of Mr. Katana’s removal. The URSB’s mandate typically involves the registration and administration of companies, but intricate shareholder disputes often necessitate judicial intervention.

Sources indicate that the company has attempted to rectify its share register multiple times over the years, but these efforts have been complicated by the enduring dispute and the lack of clear documentation or consensus among the involved parties. The URSB’s decision to send the case to court signifies the complexity of the issue and the need for a legal determination to bring finality to the matter.

This development highlights the challenges faced by older companies in resolving historical ownership disputes, especially when they involve allegations of wrongful exclusion. The court’s intervention is now seen as the only viable path to resolving the long-standing conflict and establishing the rightful ownership structure of Natural Foods Limited.

Read more at: https://www.monitor.co.ug/uganda/business/markets/shareholder-removed-from-records-ursb-fails-to-resolve-47-year-dispute-sends-it-to-court-5596420