Shareholders

Apolo Hotel Corporation Ltd v Geoffrey Oryema and Others ((Civil Appeal No.12 of 2006)) [2007] UGSC 6 (21 September 2007);

Flynote: 

Search Summary: 

This is an appeal from a decision of the Court
of Appeal in which that court reversed an
order of the High Court striking out the
appellant as defendant to a suit and held that
the appellant was the right party to be sued by
the respondents. The background is that the
respondents were employed but were
dismissed by the appellant. They sued the
appellant at trial but the judge dismissed the
suit on the ground that it was not their
employer. At appeal, it was held that they

were their employer hence this appeal on the
ground that the hotel was for the government
of Uganda and that the appellants were never
employers of the respondents.

Headnote and Holding: 

The court held that although the Government
was the majority shareholder in Apolo Hotel
Corporation, at all times the hotel belonged to
the Corporation and not to its shareholder.
That according to the Act establishing the
hotel, the business belonged to the corporation
and it was not shown when the ownership
changed hand.

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