The Development Bank of Zambia (DBZ) has insisted that Fred M’membe and Nchima Nchito must be held personnaly liable for the K14 billion loan because there is no law that stops the piercing of the corporate veil.
Nchito and M’membe had objected to the application by the DBZ for the Court to lift the corporate veil and hold them personnally liable to paying back the K14 billion loan obtained under the now defunct Zambian Airways.
The two did not want the corporative veil lifted, to make them liable because it was ‘’premature and irregular before the company’s liability was ascertained.’’
But DBZ has argued that M’membe and Nchito had failed to provide legal authority in support of their position.
DBZ said Nchima Mutembo and M’membe had not shown cause or authority in support for the courts to reject the application to lift the corporate veil, and so it must be dismissed.
The bank said the evidence relating to the roles, actions and respresentations of those involved in the transaction showed that they were central to the question of liability.
They the objection had no basis in law and ought to be dismissed to allow the matter to continue asproposed by the Bank.