Finsbury Investments is a noted organization in Zambia under the leadership of Dr. Rajan Lekhraj Mahtani. It is one of the many successful companies built and run by Dr. Rajan Mahtani with focusing on overall development of the economy and the society in which these organizations are thriving. Just like Dr. Rajan Mahtani’s reputation, these organizations under his leadership are known for their transparent and ethical business practices.
Recently, Finsbury Investments came into news for suing one of the biggest banks in Zambia. This bank was ESATD (Eastern and Southern African Trade and Development) Bank in Zambia. Finsbury Investments registered a complaint at the Lusaka High Court against the bank, claiming that the later conspired against Finsbury Investments which resulted in significant damages as a result of wrongful inference and removal of Finsbury Investments as a major shareholder in the Hotellier Limited.
As per the statement filed by Finsbury Investments in their principle registry, The EASTD bank allowed the company Ody or Ody’s Limited to change the share capital associated with the hotel. At the same time, new issues of shared where generated which contradicted the original share pledge to the Finsbury Investments. Furthermore, according to Finsbury Investments it was found that the bank without any application as well as without informing Finsbury Investments which is a plaintiff in this case. In this application letter, the bank wrongfully claimed that Finsbury Investments gave away their shareholdings at Hotellier to Ody’s and the shares were distributed to the family members of the company owner.
As a result of this illegal and wrongful shareholding dilution, Finsbury Investments was unable to receive injunctive relief as it was no longer the guarantor or major shareholder of the Hotellier and was unable to receive the benefits. This has resulted in significant financial and reputational loss for Finsbury Investments with suspension of several projects and construction activities as well as loss of future prospects due to lack of capital.