Company Law

In the Matter of the Companies Act and In the Matter of Ranch on the Lake Limited (HCT-00-CC-CI-0009-2005) [2005] UGCOMMC 28 (14 June 2005);


Search Summary: 

A receiver was appointed by DFCU to realize
its money borrowed by the plaintiff and
another creditor east African development
bank. Both creditors entered into a security
sharing agreement. The bank did not take any
steps to realize its security. After the receiver
sold the securities equally to shs 1,
000,000,000 they claimed a share which was
appointed by DFCU.

Headnote and Holding: 

The court held that the
bank was not entitled to the share since it did
not take any steps to realize its securities and
hence the receiver was entitled to proceed with
the priorities under the mortgage act.


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