The Commercial Division of the High Court has denied an application to transfer 20% of shares belonging to a missing director of Bemuga Forwarders Limited to the company’s majority shareholder, Dr. Ben Mugasha.

Justice Patricia Kahigi Asiimwe ruled in favor of removing Ronald Kanyerezi Mark Oliver from the company’s list of shareholders but declined to allocate his shares to Mugasha.

According to Mugasha’s affidavit supporting the request, Kanyerezi was initially included as a shareholder to contribute technical expertise and facilitate business growth. However, when these expectations were not met, Kanyerezi reportedly left without notice while serving as the company’s CEO. Attempts to locate him were unsuccessful, with his father informing the company that he had moved abroad in pursuit of better opportunities.

Mugasha also claimed that Kanyerezi was implicated in financial irregularities, including a loss of UGX 1.6 billion linked to criminal investigations in Kampala and an additional UGX 2.022 billion loss incurred by Bemuga Forwarders. He further stated that after being asked to account for the missing funds, Kanyerezi disappeared and has not been heard from since December 2021.

In her ruling, Justice Asiimwe acknowledged the necessity of ensuring smooth business operations. She permitted the removal of Kanyerezi from the shareholders’ list but emphasized the importance of protecting his ownership rights.

“Shares are a form of property, and the court must safeguard the interests of all parties involved,” the judge noted. She ruled that Kanyerezi’s shares would be held in trust by the company until he claims them.

Additionally, the court ordered that any dividends generated from these shares over the next three years be preserved. If unclaimed within this period, the shares may be sold to an interested buyer following a proper valuation and public notice in a widely circulated newspaper.

Bemuga Forwarders, which specializes in heavy machinery hire, transportation, and clearing and forwarding, had made significant investments in the oil exploration sector. However, financial difficulties, including the underutilization of its equipment, nearly drove the company to collapse.