LIDWALA, RESURE INSURER FIGHT OVER SHARES

MBABANE – A legal battle over shares between Lidwala Insurance Company and Resure Insurer Limited has ensued

Resure Insurer Limited has since instituted legal proceedings against Lidwala Insurance Company.
The applicant (Resure Insurer Limited) is among other prayers seeking an order declaring the transfer of shares in Lidwala’s Insurance from it to businessman Moses Motsa, to be unlawful and of no force and effect.

It also wants the court to order and compel Lidwala Insurance Company to alter its register of shareholders to reflect that the said shares belong to Resure Insurer Limited.

The applicant further seeks an order compelling the Registrar of Companies to expunge from his records the current Form C dated July 25, 2017, in respect of Lidwala, which reflected the transfer of shares from Resure Insurer to Motsa.
Pending finalisation of the matter, the applicant wants Lidwala to be prohibited and interdicted from transferring 497 558 shares from the Registrar of Insurance and Retirements Fund to United Holdings.

Respondents

Other respondents in the matter are well-known businessman Motsa, Registrar of Insurance and Retirement Funds, the Attorney General and United Holdings.
Frederick Willem Verhagen, who is the director of the applicant, stated that Resure was the owner of the shares that were allegedly unlawfully transferred to Motsa.

He pointed out that in a letter written by Lidwala in October 2015, the number of shares held by and registered in the name of the applicant were 995 116.

“It is no coincidence that all of a sudden, Resure’s shares have diminished and Motsa’s shares have increased, yet those of the other shareholders have remained the same,” submitted Verhagen.

He averred that there was no adequate alternative remedy available for Resure, as it could not itself alter shareholders register of Lidwala and issue a new Form C that reflected that it was still the owner of and held the 995 116 shares.

Demands

According to Verhagen, there are various demands from Resure to Lidwala demanding documentation upon which transfer of shares was made.
He alleged that a letter emanating from Lidwala confirmed Resure’s ownership of the shares.
“To the contrary, there is now lawful instrument signed by Resure, evidencing transfer of the said shares to Mr Motsa,” submitted Verhagen.

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