THE Supreme Court has upheld a High Court order and dismissed an appeal by Interfin Securities to keep share certificates and shares owned by Remo Investment Brokers that had been lodged as collateral for a loan.
CHARLES LAITON SENIOR COURT REPORTER
The loan was repaid, but Interfin went on to sell the shares. The ruling by the Supreme Court has the potential to throw the stock market into disarray as innocent shareholders could find themselves in cross-fire when the Deputy Sheriff starts moving around recovering Remo’s shares from wherever they were sold.
The order of the High Court, which was in favour of Remo and appealed against by Interfin Securities, read in part: “The respondent (Interfin) be compelled to return immediately the following shares; CBZ 5 000 000 shares, Old mutual p/c 400 000, Old Mutual p/c 300 000, Dairibord Zimbabwe Limited 5 000 000, and TA Holdings Limited 1 012 161, within three days of this order failing which the deputy sheriff is authorised to seize the shares certificates and shares listed above from the respondent or from whomever may be in possession of the said share certificates and shares.”
Remo’s lawyer Everson Samkange said following the Supreme Court’s ruling, his client (Remo Investment Brokers) approached the Zimbabwe Stock Exchange on Tuesday with a view to find an amicable solution to the matter.
“We approached the Zimbabwe Stock Exchange on Tuesday to try and see if the matter can be amicably resolved in the manner that will prevent alarm and despondency in the stock market,” Samkange said.
“If this matter cannot be resolved amicably, we will simply act according to the court order and follow our shares wherever they are and grab them. That will obviously cause panic, alarm and discomfort in the market, which is what we are trying to avoid. In fact, they can pay the equivalent value of the shares which is about $3,5 million.”
In February, the High Court ordered Interfin Securities to return to Remo Investment Brokers share certificates it lodged to different firms as security for a loan within three days of the court order.
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High Court judge Justice Maxwell Takuva also slapped Interfin with costs at a higher scale, castigating the security firm for wasting the court’s time.
Justice Takuva’s court order read in part: “As regards the costs, I am of the view that those who abuse the courts by bringing and defending hopeless cases, thereby compelling other party to incur legal costs, should be made to pay costs at a higher scale.”
