.Challenges interim order
By Onyewuchi Ojinnaka
Securities and Exchange Commission (SEC) Chief, Anthony Idigbe (SAN), on Monday, opposed an application for joinder, in a suit before a Federal High Cour Lagos, Nigeria by two Chief Executive Officers of Oando Plc, seeking rights enforcement.
It also raised an objection filed by its counsel Chief Anthony Idigbe (SAN) challenging the interim order made by Justice Mojisola Olatoregun on June 3, ordering parties to maintain status quo pending the determination of the main suit.
The preliminary objection raised by SEC seeks to set aside the order which Oando and its directors wrongly obtained.
In a multiple suits was filed by the Group Chief Executive Officer (GCEO) of Oando Plc, Mr Adewale Tinubu, and his Deputy, Mr Omamofe Boyo, they are challeging their removal by SEC as directors of Oando as well as enforcement of their Fundamental Rights.
It would recalled that on May 31, the SEC had ordered the applicants and other affected board members to resign, over alleged infractions.
On June 2, SEC further announced that it had set up an interim management team to be headed by Mr Mutiu Sunmonu, to oversee the affairs of the company and conduct an extraordinary general meeting on or before July 1.
It said that the new board of directors would subsequently, select a management team for Oando Plc.
Dissatisfied with the development, the applicants expressed concerns that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.
Consequently, they aproached the court by way of an exparte application on June 3, seeking an interim order restraining SEC from going ahead to implement effect its decision.
On same day, Justice Olatoregun of a Federal High Court, Lagos, granted the interim orders.
In the order, the court restrained SEC, its servants or agents from taking any step concerning the Commission’s letter dated May 31 in which it barred the applicants from being directors.
The court also restrained Sunmonu from acting as Head of Oando’s interim management team, pending the hearing and determination of the motion.
The court had urged parties to maintain the status quo pending the determination of the motion on notice.
The main suit was consequently, assigned to Justice Ayokunle Faji, who on June 13, set down hearing for June 24.
At the resumed hearing of the case on Monday, Mr Tayo Oyetibo (SAN) appeared for the applicants, while Chief Anthony Idigbe (SAN) appeared for SEC.
Meanwhile, Mr Yele Delano (SAN) announced appearance as representing Oando.
He expressed the company’s intention to be joined in the suit as well as seeking a consolidation of similar suits pending before the court.
He also sought an adjournment to enable him file his processes in the suit.
Responding, Counsel to SEC (Idigbe) raised opposition to their request for joinder, on the grounds that it would predertermine the respondent’s case.
He said, ” My Lord, this matter was adjourned today for hearing and I am prepared to go on,”
He argued that the issue of consolidation of the cases, is meant to accelerate the matter rather than taking it backward.
He argued that where the court allows the joinder, it would have predertermined the case of the defence and therefore, urged the court to refuse the application.
On his part, Oyetibo argued in favour of the request for joinder and urged the court to allow the party seeking to be joined in the suit.
According to him, if the court refuses the application for joinder, and the party goes on appeal, then he, the applicant, will be affected.
He therefore, urged the court to take a favourable look at the application for joinder, so that progress can be made in the suit.
In a short ruling on the issues, the court held that it was far reaching to think that the grant of an adjournment to enable a party file a motion, will be considered prejudical to the defence.
On that note, the court adjourned the case untill July 4 to hear arguments on the motion for consolidation and also fixed July 22, for hearing of the pending applications and substantive suit.
