THE High of Zimbabwe has blocked the hostile takeover of earth moving equipment business, Adelcraft Investments, by Gillad Shabtai and his driver Munyaradzi Gonyora.
The business belongs to Israel businessman, Ofer Sivan.
The court heard that Shabtai and Gonyora attempted to place Adelcraft under voluntary corporate rescue two years ago claiming that the company was on the verge of financial distress.
In pursuit of the plan, the court heard that Shabtai and Gonyora, previous non-executive directors of Adlecraft Investments, ‘executed’ an irregular board resolution in October 2021 to place the company under administration.
However, Sivan approached the court for temporary relief.
In his ruling, Justice Jacob Manzunzu said the attempted takeover of the business was illegal.
“The provisional order granted by this court on 29 November 2021 be and is hereby confirmed. The resolution dated 1st October 2021 attached to the application marked "E" endorsed under CRP3/21 is declared null and void and is hereby set aside,” Manzunzu ruled.
Manzunzu also ruled that the appointment of Alexious Dera as corporate rescue practitioner of Adlecraft be set aside.
- High Court rules on company ownership dispute
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“There shall be absolution from the instance in respect of the relief sought to interdict and restrain the first respondent from representing himself out to the public or transacting on the perjured capacity of a holder of equity in Adlecraft Investments (Private) Limited.
“The first and second respondents (Shabtai and Gonyora) are ordered to pay the applicant's costs on the ordinary scale.”
According to court papers, Adlecraft Investments has only ever been issued with 20 shares since inception, nullifying Shabtai’s claim that he holds 980 shares through another company.
Justice Manzunzu ruled that it is undisputed Sivan legally acquired the entire share capital of Adlecraft Investments in 2012.
Shabtai and Gonyora, who are on Zimbabwe Republic Police wanted list, fled the country over charges of money laundering, tax evasion, and theft of trust property.
