A recognition battle pitting the Law Society of Kenya (LSK) against Chama Cha Mawakili (CCM) is far from over after a court ruled that the government’s decision to deregister the latter following a conflict on their names was illegal.
Justice Weldon Korir declared that the decision of the Registrar of Companies to direct CCM to change its name, and subsequent deregistration, violated the group’s right to fair administrative action.
This is because the registrar failed to give CCM an opportunity to be heard before deregistration.
Through a letter dated January 9, 2019, the registrar told CCM to change its name within 14 days or be deregistered because the name was similar to that of LSK.
But the registrar realised his decision had a legal error and attempted to rectify it by holding meetings between LSK and CCM on January 25 and February 4 in order to find an amicable solution in light of the objections raised by the former.
On September 23, the registrar rendered a final decision in favour of LSK.
Justice Korir held that the registrar’s attempt to settle the dispute and the subsequent ruling while he had already decided to deregister CCM, amounted to nothing.
“The right to be heard being a constitutional requirement does not give the decision-maker the discretion to decide whether or not to hear the person to be affected by the decision,” said the judge.
POOR DECISION
CCM moved to court arguing that the registrar violated Section 58 of the Companies Act, 2015.
The basis of the dispute between the two groups is that “Chama Cha Mawakili” is a Swahili variant and a synonym of “Law Society of Kenya”.
While describing the registrar’s decision as irrational and unreasonable, CCM director Georgiadis Majimbo told the court that the registrar did not take into account relevant factors being the difference in the legal status of LSK, which is a statutory body, and CCM, a company limited by guarantee.
Mr Majimbo said that there was also a refusal to accept five other names.
But Assistant Registrar of Companies Joyce Koech said LSK had, through a letter dated January 8, 2019, expressed its objection to the registration of CCM on grounds that the two names were strikingly similar.