Amani, Cathy and Sisy have been running a hospitality business since the beginning of the year. Amani has injected Kshs 5,000,000 into the business at the start of the year. Cathy completed her university studies last year, when she graduated with a degree in Business Management. She employs her skills into the business with the help of Sisy, her younger sister. Last month, Amani's friend Peter lent the business Kshs 1000000 to assist them in expansion of the business. This amount was to be paid off monthly until the debt was offset. Amani found out that Sisy and Cathy had been receiving massive discounts from Maridadi, one of their suppliers, from the beginning of the year, which they did not inform him of. Feeling betrayed, Amani demanded access to the bank accounts and transactions of the business and declared that from then on, he would be the person in charge of making and receiving payments on behalf of the business. Cathy and Sisy object and threaten to leave the business. They come to you for legal advice.

Peter now claims he is entitled to enjoy the proceeds of the business in the same way as Amani, Cathay and Sisy.

Using case law and statutory provisions, discuss the legal issues arising.