The High Court has rejected an attempt to liquidate a financially sound company after an estranged couple failed to resolve a dispute over its management and assets.
The court dismissed Joan Catherine Wangui’s petition against her partner Robert Gethenji, seeking liquidation of RAK Limited, a company they incorporated in 2012.
The judge held that liquidation should not be the first remedy for a shareholder disagreement.
“The material placed before the court shows primarily that the parties’ personal and domestic relationship has broken down. While that breakdown may have strained their interactions as directors and shareholders, it does not necessarily follow that the company has become incapable of functioning,” the court…