The High Court has rejected a bid by Old Mutual Holdings to strike out a petition by a businessman demanding a buyout from the insurer that could exceed Sh1 billion.
Justice Josephine Mong'are said the issues raised by the Insurer and Joel Kibe can only be determined after full evaluation of evidence to be produced before the court.
Kibe filed the case in August this year asking the court to order the company to buy him out at a premium or make an order for the insurer to be wound up.
Kibe, who claims to be a shareholder and a member with 1.54 million shares in Old Mutual alleges minority shareholders have been excluded from management and decision-making by majority ones.
He obtained an order in August blocking the company's board of directors from selling or transferring its assets.
The insurer subsequently filed a preliminary objection (P.O) saying Kibe is not a member of the company and has no legal right to seek the orders he has sought.
The insurer argued that 'because he has no legal right, he cannot apply for liquidation of the company.
But Justice Mong'are in her ruling said the issues raised on whether Kibe was or was not a member of the company as at time of filing the petition needed to be considered through facts and evidence so as to ascertain the true position.
"This can only be determined after full evaluation of evidential matter and not at a preliminary stage as sought by the firm," the judge said.
She dismissed the PO and said the issue will be considered during the hearing of the applications before the court.
