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Business Reporter
THE Supreme Court has upheld the High Court decision ordering Interfin Securities to return shares it held as security against a loan advanced to Remo Investment Brokers. The shares in dispute are CBZ Holdings totalling about five million, 700 000 Old Mutual, five million Dairibord Zimbabwe and about one million TA Holdings Limited. At the current ZSE market price, the shares are valued at about US$3,2 million.
The dispute arose after Interfin advanced a US$6,3 million loan to Remo and its associate company, Zimslate Quartzite. Remo provided some share certificates as collateral.
In February 2012, Remo requested Interfin to provide the details of the outstanding loan and was advised that it was US$649 694. The money was then paid two days later. Upon repayment, Interfin was supposed to return the certificates.
However, this did not happen. A month later, Remo realised that two of the share certificates had been registered under Kingdom Nominees. Remo also discovered that Kingdom had re-registered these certificates into other parties’ names. After Interfin failed to return the shares and certificates, Remo made a court application for an Anton Pillar Order, which provides the right to search premises and seize evidence without prior warning, to have the shares placed is custody of the Deputy Sheriff.
But Interfin opposed the application arguing the shares were sold after Remo had defaulted.
However, Justice Takuva said Interfin’s argument defied logic in that it did not explain why Interfin accepted the repayment when it had liquidated the security to recover its money. Interfin then appealed to the Supreme Court which dismissed the application. The appeal was heard by Mrs Justice Mavangira, Acting Judge of Appeal.
With the shares having changed hands, it might be a nightmare to track down the shares.
Online Reporter