WHEN THE COMPANY DISAPPEARS, THE CORPORATE VEIL MAY NOT SAVE IT
In Alex Tozi v Out Media International Ltd & Others, Misc. Application No. 104 of 2026, the High Court (Commercial Division) dealt with an interesting execution question: Can directors be reached where a judgment debtor company has no traceable assets or physical presence?
Tozi had obtained judgment for UGX 294 million, plus interest, transport costs, nominal damages and costs. Searches revealed that the company had no assets registered in its name, its former premises had been vacated, and it could not be traced at its newly registered address. Even more telling, company funds had been secured using property belonging to one of its directors.
The Court emphasised that incorporation is not a licence to use separate legal personality to defeat justice.
“The concept of corporate entity was evolved to encourage and promote trade and commerce but not to commit illegalities or to defraud people.”
The Court further held that the corporate veil may be lifted not only for fraud, but where there is flagrant injustice or improper conduct, and that the veil can be lifted even at the execution stage in appropriate cases.
Most importantly, the Court found that where the company and its assets could not be traced, refusing to lift the veil would make “a blatant mockery of justice” because the judgment creditor would be left unable to enforce the decree
takeaway:
A company is a separate legal person but separate personality is not an escape route from a lawful judgment. Where the corporate structure is being used in circumstances that undermine justice, the veil may be pierced.
The application was allowed, the corporate veil lifted, and the 2nd and 3rd respondents were ordered to show cause why execution should not issue against them. Costs followed.
In short: incorporation creates a shield; it does not create a hiding place.
Justice Gadenya Bail is personal to each accused person,✍️joinder with a co-accused facing a capital offence does not oust the Magistrates Court’s jurisdiction to determine bail on a separate non-capital charge ✍️Administrative convenience cannot override the applicant’s proper statutory forum. ✍️Magistrate court retains jurisdiction to receive and determine application for ordinary or mandatory bail in accordance with the Constitution, the Magistrates Courts Act and the Bail Guidelines until the accussed person has been committed for Trial.
✍️A charge sheet may contain several counts and several accused persons.
✍️Joinder is a procedural device intended to facilitate the efficient conduct of related criminal proceedings. It does not merge distinct offences, increase their penalties, or convert a non-capital offence into a capital offence.
✍️Equally, it does not deprive a Magistrate’s Court of the jurisdiction which Parliament has conferred upon it in relation to an accused charged with an offence triable by that court unless the law provides otherwise
✍️Bail is personal to the applicant. The court must examine the offence for which that applicant is detained, the forum competent to deal with that offence, and the applicant’s individual circumstances.
✍️ The gravity of a co-accused’s charge may form part of the factual background, but it cannot determine the court in which this applicant must seek bail.
✍️To hold otherwise would produce an unjust and legally unsupported result if a person charged with a minor offence were subjected to the forum reserved for capital offences merely because the prosecution placed both persons on a single charge sheet. Such an approach would allow the form of joinder to displace substantive statutory jurisdiction. Yet jurisdiction cannot be created or removed by the drafting arrangement adopted by the prosecution
✍️The applicant’s reliance on the capital count faced by another accused merits consideration. Until the applicant is lawfully committed to the High Court for trial, her case remains before the Magistrate’s Court. That court retains jurisdiction to receive and determine her application for ordinary or mandatory bail in accordance with the Constitution, the Magistrates Courts Act and the Bail Guidelines
✍️For clarity, a Magistrate’s Court’s lack of power to try or grant bail on the capital count facing one accused does not prevent it from dealing with the separate non-capital count facing another80 accused.
✍️If necessary, the Magistrate’s Court may order the appropriate separation of the records, or the prosecution may present the charges in a form that respects the jurisdiction applicable to each accused.
✍️Administrative convenience cannot override the applicant’s proper statutory forum
legal representatives:
Joshua Nuwabine — counsel for the Applicant.
Ms Happiness Ainebyona — Chief State Attorney.
Case link: https://t.co/3WKli7x6PR
This money they keep on splashing to some international artists who just come to show up at State House should be given to our suffering Ugandans dying in Arab countries. USD 1m is UGX. 3.7BN. If govt is to call back and give start up capital to 500 of them each gets 7.4m good enough to start a business. Do you know how happy they would be plus their families?????
YOU CAN SUE YOUR OWN FAMILY FOR DEFAMATION.
The High Court in Jinja presided by Her Lordship Joanita Bushara has found that Magistrate Steven Johnson Waidhuuba was defamed by his own biological mother and brother.
The Court found that the statements, letters and publications made against the Magistrate were false and defamatory and awarded him UGX 20 million in general damages, with interest at 6% from the date of judgment until payment in full.
The Court further issued a permanent injunction restraining the defendants from republishing the defamatory allegations and ordered them to issue a written retraction and apology.
A significant judgment affirming that even family members cannot use false and defamatory allegations to destroy a person's reputation and professional integrity.
As Pastor Patience Rwabwogo now becomes Bishop, I remember when I prayed in her Church twice and I wrote this story.
In church with Pastor Patience Museveni Rwabwogo https://t.co/7QjGrRSPp8 via @observerug
ILM SERIES | Part 1 - The Honour of Knowledge 📜
"Nothing is more honourable than knowledge. While the kings rule over the people, the learned rule over the kings." Ibn Aswad
#seekKnowledge
CURTAIN PRINCIPLE EXPLAINED
A Search at the Lands Registry Is NOT the Whole Due Diligence Exercise
In Nakazibwe Hamida v Kamya Robert Kitandwe & Another, the High Court delivered an important reminder on land transactions and mortgage due diligence.
The standout observation:
“Due diligence goes beyond a search at the land registry or the premises.”
The Bank had inspected the property and conducted a registry search, but its officials never spoke to the persons occupying the land. The Court consequently found that the Bank had constructive knowledge of the Plaintiff’s unregistered interest.
Yet, interestingly, the Bank was not found liable for fraud. Section 120 of the Registration of Titles Act protected it because mere knowledge of an unregistered interest does not, by itself, amount to fraud. The fraud was instead attributed to the vendor's concealment and misrepresentation.
The lesson for lenders and purchasers is clear: a clean search is only the beginning. Go to the land. Talk to the occupants. Ask questions.
The Court ultimately declared the mortgage null and void to the extent of the Plaintiff’s land, vested the land in her and awarded UGX 15 million in general damages.
#Duediligence
@UEDCLTD Buyego-Bombo is not part of the info. However it has been in a shutdown for the last 27hours, please restore the powers because inconveniences so far suffered are extreme and degrading
@DaltonKaweesa Back to the citizenry, are we satisfied that public servants are really trustees, or they take the trust even beyond a privilege (worse) to an entitlement (worst)
👑 Power bows where justice reigns. Remember! the ruler of an empire, Sayyidina Ali (RA), humbled before a judge ⚖️ alongside an ordinary citizen. No privilege, no pride. When he lost the case, he smiled and accepted. ❤️ True justice isn’t about winning; it’s about a pure heart.