TWO prominent businessmen have been dragged to court on allegations of fraudulently taking over a mining company in which they were shareholders.
Mark Andrew Hughes (66) from Bulawayo and Francesco Marconati (67) who is based Harare appeared at a Bulawayo magistrate court facing two counts of fraud and forgery charges.
According to State papers, the complainant is Yan Bo, a Chinese national based in Harare who is the alternate director and shareholder of DGL Investments Number Five Private Limited.
Yan Bo, according to the State, was appointed by Ke Wang in his absence according to section 63 of DGL Investments Number Five Private Limited Company's Articles of Association.
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Hughes is one of the Shareholders of DGL Investments Number Five Private Limited representing Gwampa mining owning 20% shares.
Marconati is one of the shareholders of Eagle Italian Shoes Private Limited which owns 25% shares of DGL Investments Number Five Private Limited Company.
It is the State's case that on November 4, 2021, Hughes forged a CR6 form and filed with the Registrar of Companies, Bulawayo where he appointed himself as director of DGL Investments Number Five Private Limited with a date of 19 April 2021.
On January 28, 2022, Hughes allegedly forged a CR6 form with the Registrar of Companies and Intellectual Property and appointed Marconati as a new director with a back date of January 266, 2022 without conducting any shareholders’ meeting or general meeting.
The State also revealed that the accused filed the CR6 return without the knowledge and consent of the three shareholders and company secretary Li- Song.
As a result, the filings were fraudulent in that all the three existing directors who are representatives of shareholders had no knowledge of, nor did they give consent to the changes to be made as reflected in such filings and the company.
In that case, procedures were not followed to appoint them and the documents therefore constitute a misrepresentation of the affairs of the company.
Pursuant to their plan, the two accused persons took control of all mining activities at the said company and barred other shareholders Xing Mingchang and Ke Wang and Li Song from entering into the company premises as well as access to the company's mine production records.
The State also noted that Marconati further gave mining contracts/tribute agreements to illegal miners for their own personal benefits using company assets.
The complainant later realised what the accused persons had done and made a report to police leading to their arrest.
