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ELRCStruck OutPetition dated 07.05.2024

Music Copyright Society of Kenya (MCSK) v Muli & 2 others (Petition E004 of 2025) [2025] KEELRC 1621 (KLR)

Employment and Labour Relations Court
29 May 2025
1,021 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~4 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court struck out MCSK's petition, ruling that a departed CEO had no authority to file it and that directorship disputes belong in the High Court.

What this practically means

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Executive summary

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The petitioner company filed a petition dated 07.05.2024 through Felix Okiri Advocate, supported by a notice of motion of even date seeking interlocutory injunctions restraining the respondents (its directors) from operating bank accounts and interfering with assets, and alleging their tenure as directors had lapsed by operation of law under the company's constitution and the Companies Act, 2015. The petition invoked Articles 41, 36, 43(1)(c), 47, 28 and 10 of the Constitution and sought declarations that the respondents' continued stay in office was illegal, null and void, that post-tenure decisions were void ab initio, and an order that they vacate office, with costs. At the inter partes hearing, rival advocates appeared for the petitioner. Mr. Okubasu, filing a notice of change of advocates, submitted the petition was filed without Board authority since Dr. Ezekiel Mutua, who instructed Mr. Okiri, had been terminated as CEO effective 03.04.2025, a termination he challenged in ELRC E041 of 2025. Affidavits of Richard Sereti, the acting CEO, confirmed lack of instructions per Board minute 5/5/5/2025. The Court held that Mutua lacked due authority to instruct filing, so the petition was filed without the company's authority as a separate legal entity. It further held that disputed directorship is strictly not an employment relationship and that the proper forum is the High Court under the Companies Act, following the Court of Appeal in Rift Valley Water Services Board v Asanyo, noting the parties had already moved the High Court. The Court concluded the petition lacked jurisdiction and ordered it withdrawn or struck out with no orders on costs, and closed the case file.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the petition was filed with due authority of the petitioner company, Dr. Ezekiel Mutua having been terminated as Chief Executive Officer before filing
  2. 2.Whether the Employment and Labour Relations Court has jurisdiction over a dispute as to the validity of directorship of a company limited by guarantee
  3. 3.Whether costs should follow the withdrawal/striking out of the petition

Key legal issues

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01

Authority to institute proceedings on behalf of a company

Holding

The petition was filed without due authority because Dr. Ezekiel Mutua, who instructed the Advocate, had been terminated as CEO effective 03.04.2025 before the petition was filed

Reasoning

Richard Sereti's affidavits sworn 20.05.2025 showed Mutua was former CEO effective 03.04.2025, with a public announcement and a Board resolution (minute 5/5/5/2025) confirming no instructions to Mr. Okiri. Mutua himself acknowledged the termination in his own petition ELRC E041 of 2025.

p. 3
02

Jurisdiction of the ELRC over directorship disputes

Holding

The ELRC lacks jurisdiction; disputed directorship is strictly not an employment relationship and the proper forum is the High Court under the Companies Act, following the Court of Appeal in Rift Valley Water Services Board & 3 others v Asanyo

Reasoning

The petition sought declarations on the validity of the respondents' tenure as directors of a company limited by guarantee. Relying on the Court of Appeal decision and Gikenye v Mwaura, the Court held such disputes are not employment disputes. The disputants had already moved the High Court.

p. 3

Legal principles established

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  • A dispute as to the validity or tenure of directorship of a company is not an employment relationship and falls within the jurisdiction of the High Court under the Companies Act, not the ELRC
  • A petition filed without due authority of the company as a separate legal entity is liable to dismissal

Court orders

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  1. 1.The petition is hereby withdrawn or struck out with no orders on costs
  2. 2.Case file closed

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Constitution and statute; court found jurisdiction lacking, proper forum being the High Court under the Companies Act, 2015

Relief refused

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Declarations that the respondents' continued stay in office was illegal, null and void and that decisions taken after lapse of tenure were void ab initio, and an order that respondents vacate office

The Court found the petition was filed without due authority of the company and that it lacks jurisdiction over disputed directorship, the proper court being the High Court under the Companies Act

p. 3

Costs of the petition to the petitioner

As the Company sought to withdraw, no orders on costs were made

p. 3

Costs

No orders on costs - each party to bear own costs of the petition

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

The Court finds that indeed the suit was filee without due instructions and while the directorship of the respondents is in dispute, what is pertinent is that indeed the petition was filed without due authority of the company as a separate legal entity.
p. 3Authority to institute suit on behalf of a company
In that consideration it is that the Court lacks jurisdiction to hear and determine the instant petition which, is liable to dismissal.
p. 3Jurisdiction - ELRC and directorship disputes
In conclusion, the petition is hereby withdrawn or struck out with no orders on costs, and, case file closed.
p. 3Final orders

Issues in the judgment

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minor

The judgment states the petition is dated 07.05.2024 but the accompanying notice of motion is dated 07.05.2025 and the tenure is alleged to have lapsed on 16.02.2025; the petition date appears to be a typographical inconsistency

minor

Typos in judgment: 'filee' for 'filed' and 'ofice' for 'office'

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Music Copyright Society of Kenya (MCSK) v Muli & 2 others (Petition E004 of 2025) [2025] KEELRC 1621 (KLR)", Case Analysis (2025). Petition dated 07.05.2024. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1621/eng@2025-05-29

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.