Freezing of Company's bank Accounts unilateral by minority 49% shareholder

2 years ago

The Director of the Company who was spouse and also Director and 49% shareholder of the Company leaving abroad. The Majority 51% shareholder and Managing Director of the Company at the time of freezing of the Company's bank accounts he was in China to Purchase Company goods.

2 Directors and shareholders exchange Power of Attorney in 2005 which was registered with the Ministry of lands.

At the time of borrowing money from the bank in September 2016 the Power of Attorney was used by Majority shareholder because Minority shareholder was not in the Country as she is staying abroad.

The bank had frozen Overdraft and Loan account of the Company on 28th November 2016 by receiving email from Minority shareholder which was attached with notice of revocation of Power of Attorney from abroad. The Power of Attorney which she is revoking is of July 2014 whereby Majority shareholder was not aware of this New Power of Attorney. during the time of freezing of accounts the Majority Shareholder of not in the Country as he went to China for Purchase Company's goods. The Minority shareholder came back from abroad and unilaterally visited the bank on the same day 28th November 2016 and she has done meeting with the bank CEO thereafter the said email of freezing came.

On 29th November 2016 she has reminded in her email to the bank that the bank in the meeting decided to freeze the Company's bank accounts.

On 30th November 2016 the Minority shareholder has written letter to the bank on the Company's letter head that requesting to freeze the Company accounts in this letter she refer to the meeting she has done with the bank.

and on 2nd December 2016 the emailed to the Company that they have unfreeze Company's bank account for normal operation and requested to the shareholders to resolve the matter amicably.

The Company continue to operate the bank accounts normally, but the business went failing as the Company did not get the goods which was expected from China.
the all this happen after the freeze the Company bank accounts.


On 17th July 2017 we through our lawyer serve Demand Notice for Claiming of 20 Billion Tshs this was General damages and earnings which have lost.
We service the bank account till 28th July 2017 as on the same date we have filed litigation in the Hight Court against the bank for unfairly freezing of the Company accounts due to our business was effected as the company got the raw materials but it could not make into finish products because the goods to finish the products we could not get goods from the supplier due to freezing of the bank accounts.

and the bank file case against the Company on 8th January 2018.

On the above matter can you please advise us who has breach the Contract? Is the Company or the Bank? The bank is claiming in every area of the case that they took precautionary measures too freeze the Company's accounts is this statement correct?

Our Company details as follows:
Hi Bros Canvas & Tents Ltd
P.O. Box 14856
Dar es Salaam
Tanzania.
Parvez Hirhi
Managing Director
Phone +255713329889
email: [email protected]

OUR CASE NO 144 OF 2017 IN THE HIGH COURT OF TANZANIA -HI BROS CANVAS & TENTS LTD (PLAINTIFF)
V/S I &M BANK LTD (DEFENDANT)

BANK COURT CASE NO 03 OF 2018 COMMERCIAL DIVISION HIGHT COURT TANZANIA - I & M BANK (T) LTD (PLAINTIFF)
V/S HI BROS CANVAS & TENTS LTD (DEFENDANT 1) AND PARVEZ ABDULHUSSEIN HIRJI (DEFENDANT 2)