JUDGMENT OF THE COURT
1. The appellant, The Capital Markets Authority, (CMA), is an authority established under the provisions of Section 5 of the Capital Markets Act (CM Act). It is charged with the responsibility of, inter alia, promoting, regulating and facilitating the development of orderly, fair and efficient capital markets in Kenya.
2. The respondents were directors of Imperial Bank Limited (In Receivership), hereinafter referred to as the “the Bank”. The Bank was established in 1992 and had a Board of Directors made up of one executive Managing Director, six non-executive directors and three independent non-executive directors.
3. On 30th March, 2015, the Board approved the Bank’s issuance to the general public of a Corporate Board of Kshs 2 billion. The Bank’s Managing Director, Mr. Abdulmalek Janmohamed, and the Bank’s Chief Finance Officer, Mr. James Kaburu, were the only insiders who were involved on behalf of the Bank in the issue. The two officers together with the various…