A MAJOR shareholder at Hwange Coal and Gasification Company Chinese businessman Su Longim has filed an urgent High Court chamber application seeking an order to block a planned annual general meeting scheduled for tomorrow.
Report by Charles Laiton
In his application, Longim, whose company Taiyuan Sanxin Economic and Trade Company holds 75% shareholding in Hwange Coal and Gasification Company, said the impending AGM was organised without his consent.
“This is an urgent chamber application seeking an interim order to interdict the respondents from holding an AGM on April 24, in terms of a notice circulated on March 26, 2013 published in the media,” he said.
Longim cited Hwange Coal and Gasification Company, Hwange Colliery, Ananias Banda and the Registrar of Companies as the first, second, third and fourth respondents respectively.
“Applicant (Taiyuan Sanxin Economic and Trade Company) owns 75% shareholding in the first respondent’s company whilst second respondent holds 25% shareholding as indicated on the Zimbabwe Investment Authority licence issued on June 21, 2011,” Longim said.
The events leading to an AGM impasse started on March 20 this year when Hwange Colliery company secretary, Banda received a letter from the applicant’s board chairperson, Zhang Jinuan requesting for the AGM to be convened at an earlier date.
On March 26 Banda is said to have caused a notice to be issued and circulated to shareholders of Longim’s firm advising of the AGM date as April 24, 2013.
“The notice clearly states that it is by order of the board chairperson yet it is trite law that an AGM should be sanctioned and authorised by the board of directors and not by the chairperson alone,” Longim said.
“The chairman and Banda have no power to act on their own volition. Furthermore, the agenda in the notice was also unauthorised. Critically and not withstanding such lack of authority from the board, the notice is in any event patently defective and of no force and effect.”
The matter was set to be heard before High Court judge Justice Garainesu Mawadze yesterday.