High Court allows former Kenyan international Taiwo to register Migori United as a limited company

The High Court of Kenya has quashed a decision by the Registrar of Companies to block former Harambee Stars player Taiwo Atieno from registering a business entity known as ‘Migori United Football Club Limited.’

Justice Roselyne Wendoh said the Registrar had violated Taiwo’s right to administrative action that is fair, lawful, reasonable and expeditious.

"The unilateral decision of rejecting registration of the petitioner’s proposed company without giving him audience and an opportunity to be heard, was an infringement of his right to fair administrative action," said Justice Wendoh.

She directed the Registrar to list the proposed company under the name of ‘Migori United Football Club Limited’, which was reserved on February 17, 2021 subject to Mr. Taiwo obtaining a letter of no objection from the Registrar of Sports within 45 days.

The former Harambee Stars striker had sought incorporation of the company so as to enable him pursue sports activities and venture into other income generating activities for the benefit of sports development and investments in Kenya. 

His case in court was that he conceived the idea of incorporating a company which would carry out professional football and youth development in Kenya, stadia infrastructure and management as well as hotel accommodation.

Taiwo outlines KPL plans

Through the intended company, he also plans to carry out business such hospitality, conference and events facilities, fitness training facilities, commercial facilities and related sports amenities.

The player said that the idea of incorporating a company was not new as it was the best vehicle to secure among others, equity, share certificates and for the purposes of developing the sports infrastructures among other facilities as provided for under Section 2 of the Companies Act.

But the Registrar of companies rejected the proposed company name for the reason that the word ‘club’ is allegedly not allowed in registration of a company and taiwo was advised to and register with the Sports Registrar.

However, on February 17, 2021 he received a notification that the proposed name was allowed.

On that basis, he lodged the necessary documents for registration of the company, but he was faced with another hinderance two days later after he was instructed to obtain a letter of no objection from the Registrar of Sports.

Justice Wendoh said there was no fault on the part of the Registrar by asking for a letter of no objection from the Registrar of Sports to carry out the activities in the name of a Sports Club as he plans to eventually register himself with the Registrar of Sports.

"Although the petitioner had a right to register the proposed name as a private entity, he was also under duty to obtain a letter of no objection from the Registrar of Sports who is mandated to regulate sporting activities in the country," said the judge.

Taiwo has for a while insisted that Kenyan football teams need to be registered as limited companies in order to trade as professional businesses.

Reporting by Nation