By Onyewuchi Ojinnaka
The legal battle between the Nigerian vehicle manufacturer, Innoson Nigeria Limited, and Guaranty Trust Bank (GTB) is yet to be over goimg by the latest development.
The bank’s perceived move to change its legal status from a public limited liability company prompted Innoson Nigeria Limited to file a suit before a Federal High Court sitting in Enugu to stop the move.
Consequent upon the bank’s move to change its current legal status, Innoson
has prayed the Federal High Court to stop GTB Plc from changing its legal status as a public limited liability company until it pays over N32 billion judgement debt allegedly owed Innoson.
In the suit filed Monday November 23 with suit number FHC/EN/CS/161/2020, before a Federal High Court sitting in Enugu, Enugu State, Innoson Nigeria Limited is seeking an “order of perpetual injunction restraining the CAC from deregistering the GTB as a public limited liability company and or re-registering the bank as a private limited liability until GTB pays the company outstanding judgement debt of N32, 875, 204, 984.38k arising from Suit Nos: FHC/L/CS/603/2006 and No. FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts.”
Innoson Nigeria Ltd also prayed the court to issue an order “cancelling the 1st defendant’s (GTB) special resolution and or any other of its resolution that it should be deregistered as a public limited liability company and or be re-registered as a private limited liability company, and or a holding company until it (1st Defendant – GTB) pays Innoson Nigeria Ltd the total outstanding judgement debt of N32, 875, 204, 984.38k (Thirty two Billion, Eight Hundred and seventy Five Million, Two Hundred and four thousand, Nine Hundred and Eight Four Naira, Thirty Eight kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWk/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014 and CA/E/288/2013.”
Innoson Nigeria Limited (applicant) further wants the court to issue an order setting aside the No-objection certification issued by SEC on GTB’s proposal to be re-registered as a private limited liability company and as a holding or a holding financial company.
The company wants the court to quash the approval-in-principle granted to the bank to operate as a holding or a holding financial company by the CBN.
The 5th prayer in the suit is for “an order of perpetual injunction restraining the 2nd defendant from granting the 1st defendant a financial holding company license and or a final approval to operate or carry on business as a financial holding company whether in its present name or as a private limited liability company until it, the 1st defendant pays the plaintiff the total outstanding judgement debt of N32, 875, 204, 984. 38k (Thirty Two Billion, Eight Hundred and Seventy-Five Million, Two Hundred and Four Thousand, Nine Hundred and Eighty-Four Naira, Thirty-Eight Kobo) arising from suit Nos. FHC/L/CS/603/2006 and FHC/AWK/CS/139/2012 respectively affirmed by the appellate courts in Appeal Nos. CA/1/258/2011, SC.694/2014, and CA/E/288/2013.”
The plaintiff/applicant argued that the bank’s move to transform to a private company or holding would affect Innoson’s efforts to reclaim over alleged N32 billion judgyment debt the bank owes it.
Joined in the suit as respondents are Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC).