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UGANDA CHRISTIAN UNIVERSITY, MUKONO

FACULTY OF LAW, KAMPALA CAMPUS


THIRD YEAR BACHELOR OF LAWS

READING LIST 2019


Course Title: LAW OF BUSINESS ASSOCIATIONS I Credit Hours: 5.0
Course Code: BLAW 3103 Core:
Contact Hours: 5.0 per week
Candia Emmanuel: Lecturer1
Sarah Nambasa Masembe: Lecturer2
Leletu Jocelyn: Lecturer 3
Samson Wanambuko: Tutorial Assistant4
Gulume Lastone: Tutorial Assistant5

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:
(a) Demonstrate an appreciation of the main principles and procedures in
company law;
(b) explore the basic principles of corporate governance in Uganda;
(c) Locate the major laws, policies and best practices relating to business
organisations in Uganda;
(d) Develop critical thinking and problem solving skills about any concept of
company law;
(e) Analyse and discuss policies that affect business associations in Uganda in
comparison with other jurisdictions;
(f) Advise on matters of incorporation and management of companies and other
business organizations;
(g) 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;

1
Advocate & Commissioner for Oaths: LL.M (UCU); LL.B (UCU), Dip. LP (LDC);
canemmy@gmail.com +256752946125
2
Advocate: LLM (Georgetown), LLB (MUK), Dip. LP (LDC; msnambasa@gmail.com
+256772610280
3
Leletu Jocelyn: …
4
Advocate: LLB (UCU); Dip. LP (LDC)
5
Advocate: LLB (UCU); Dip. LP (LDC)

1
- 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.

2
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.

Winifred Tarinyebwa Kiryabwire: Company Law, A Guide to the Companies Act No.
1 of 2012 of Uganda, 2015, Fountain Publishers
(Available in the UCU Law Library)

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 and the Insolvency Act, 2011)

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

3
- 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

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
Re Nicco Ltd Miscellaneous Application No. 33 of 1995
Re Andalalapo Industries Ltd HCT CC CS No. 022 of 2005

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

5
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

6
Hindu Dispensary v. Patwa [1958] EA 74
New Vision Printing & Publishing Co. Ltd & Another v. Peter Kaggwa HCT CC MA
No. 0127 of 2006

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:

7
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
Greenland Bank Ltd v Express Sports Club Ltd HCCS No. 232 of 2006

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.

8
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

9
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.
Warenets Communications Ltd v Zzimwe Enterprises Hardware & Construction Ltd
& Others HCCS No. 48 of 2015
United Builders & Contractors Ltd v Harris International Ltd HCCA No. 29 of 2016
Jimmy Mukasa v Tropical Investments Ltd & Others HCCS No. 323 of 2007

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)

10
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

VIII- 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

11
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
A. 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

12
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.

13
Liability of the Company for the Acts of its Directors – Sections 51 & 52
Companies Act, 2012
A. 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

14
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

15
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

16
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.

17
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

18
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

19
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

20