Maseru ____ A case in which members of the Board of Directors of the Lesotho Electricity Company (LEC) are challenging their removal, has been allocated November 04 2024 as its hearing date.

The case could not proceed on Monday as scheduled because there was a new lawyer, Advocate Motiea Teele (KC) who had just been given a brief in the matter therefore had to prepare and serve papers to other parties. The case was accordingly postponed to today.

The court was however, today informed that other parties are yet to respond to the papers hence the postponement.

The applicants approached the court after they were on August 27 2024 each served with show cause letters from the Minister of Energy indicating that they should show cause why the board cannot be dissolved on August 29 2024.  

Their legal representative Advocate Tekane Maqaqachane has argued that the minister is unlawfully resorting to ministerial and political powers contrary to the provisions of section 50 read with section 73 of Companies Act. He stated that he has no authority to interfere in the management of the company using those powers. He added that the Board is entitled to manage the affairs of the company without interference. 

He further argued that shareholders must request a special shareholders meeting and a resolution be made. He said if the case is not heard urgently and there is no remedy, the applicants will lose their right of management. 

The applicants want the court to declare as unlawful and invalid, their removal through exercise of political or ministerial powers by the Minister of Energy and the government. They also seek a declarator that their removal without following the prescripts of the provisions of the Companies Act 2011 as well as the Articles of Association of LEC is unlawful and invalid.

They have asked the court to correct and set aside the show cause letters written to them by the respondents as unlawful and invalid. They asked that the Minister of Energy and the Government of Lesotho should be interdicted and restrained from interfering with the management and business affairs of the LEC pending finalisation of this application.  

The applicants further sought the court to review and declare as unlawful and invalid the government and minister's resort to political or ministerial powers and write to the applicants show cause letters instead of following the prescripts of the provisions of the Companies Act 2011.  

The board members who form part of the applicants are Molibeli Taele, Mathapelo Ramakatane, Mosia Mapota, Mokhenene Lehohla, Mokhethi Seithleko, Pesha Shale, Seretse Mohlooua and Khotso Nthontho.  

The applicants have since been dismissed as the LEC Board members and new members already appointed.

The case is before Chief Justice Sakoane Sakoane.