Judge awards shares in Krem Radio to Sagis
The Court of Appeal concluded its sitting today but before it did, it handed down a decision in the long standing appeal of Sagis Investment Limited and Krem Radio Ltd. And the court ruled in favour of Sagis. It all goes back to 1994 when Sagis invested one hundred thousand dollars in Krem in exchange for fifty thousand shares—amounting to ten percent of the radio station—from Krem’s principal, Evan X Hyde. Although Hyde had executed a share transfer, Krem never registered Sagis as owner of the shares. In 2007 Sagis sued Krem Radio in an effort to get the fifty thousand shares registered in its name. The C.J. dismissed that claim, but by a majority decision today, the Court of Appeal overturned the CJ’s decision and ordered that the fifty thousand shares currently in Hyde’s name on Krem’s share register, be registered in the name of Sagis.
Elson Kaseke, Attorney for SAGIS
“What happened in court today is that SAGIS won its appeal against KREM Radio Ltd. The effect of the judgment is that SAGIS is now the holder of fifty thousand shares in KREM Radio Ltd. Evan X Hyde has been ordered to transfer from his shareholding in KREM Radio Ltd fifty thousand shares to SAGIS Investment Ltd. In addition, SAGIS now has the right to participate as a shareholder in KREM Radio Ltd. The contract was structured in such a way that KREM Radio Ltd was advanced one hundred thousand dollars. The repayment was that seventy-five thousand dollars was to be re-paid either in terms of cash repayment, or advertisements through KREM Radio Ltd. The other twenty-five thousand dollars was supposed to be used to pay for shares in KREM Radio Ltd. in the amount of fifty thousand shares. It was agreed when the transaction was being structured that Evan X Hyde would transfer fifty thousand shares from his shareholding in KREM, he in fact signed a transfer instrument in favor of SAGIS Ltd, but the share certificate was never issued. That was the bone of contention.”
There was no indication from Krem’s attorneys Michael Young and Lois Young if Krem will now turn to the Privy Council. Nor is it known when the next A.G.M. of Krem will be held. And just before news time, News Five learnt that the ten percent Sagis shares are owned by the Hayward Charitable Trust and will be used to benefit charitable causes in Belize.
