RESEARCH OVERVIEW
The research seeks to examine the legal framework governing
shareholder rights in Uganda, specifically putting emphasis on how the
companies Act as the mother statute governing company law in Uganda in
support of other existing laws such as the insolvency Act, CMA Act, USE
rules among others has provided for and effectively protected the rights of
shareholders.
The researchers take note of the fundamental fact that for protection by
the law to ensue, it shall only be in relation to the kind or type of
shareholder it seeks to protect. To that effect, the researchers shall
therefore go ahead and highlight in detail the different types of
shareholders provided for and protected by the Companies Act i.e.
Ordinary shareholders, preferential shareholders, minority shareholders
vise vie the majority. Consequently, the researchers shall identify the
different rights that are provided for in the companies Act which
categorically range from right to attend and vote at AGMs, dividends,
inspect records, preemptive, sue among others. In so doing, the
researchers will effectively be able to examine how and whether each of
these rights have been protected.
Accordingly and with reference to the necessary provisions of the
Companies Act as the major law e.g. Section 243 to 246 that protect the
minority shareholders. and in support of the provisions of the different
sister laws governing the protection of shareholder rights in Uganda, give
a detailed analysis of whether the Ugandan Courts have effectively given
effect to the protection of the shareholder rights in Uganda. Cases like
Salim v Uganda Oxgyen Ltd in which Justice Order discussed minority
rights. Sir Udo Udoma in Misango v Musigire enforced the voting rights
of the plaintiff who had been absent in the voting in the AGM among other
cases.
We shall also examine the case laws of different jurisdictions such as
Hutton v West Cork Railway Co. where US Court upheld the actions
and right of the shareholder to sue in respect to the ultra vires actions of
the company.
As a result, we shall look at the available overlaps in the exiting
shareholder rights and their enforcement by the courts of Uganda.
We shall effectively identify and look at the necessary challenges that
exist in trying to enforce the shareholder rights as provided for by the
Companies Act.
We shall examine the necessary available and accessible literature on the
protection of the shareholder rights in Uganda. We shall therefore examine
the scholarly views in as as far as the protection if the shareholder rights
in the Companies are protected and consequently identify the loopholes in
the discussions.
We shall also collect data from different available avenues e.g. the
commercial lawyers, company registrars, judicial officers, company
owners among others who will aid us with the necessary information in
comprehensively making our study. The data will thus be analyzed and
help the researchers to effectively arrive at a comprehensive and
informed decision as regards to the protection and enforcement of the
shareholder rights in Uganda.
To the effect, we shall be able to come up with the necessary
recommendations on how, if such shareholder rights were violated and or
not protected such as the necessary statutory amendments, avenues of
how the victims could be remedied among others with the conclusions.
