Union Bank shareholders vs directors Court fixes judgment for Oct 22
Category: Investors NewsBeat
Written by Akeem Nafiu Thursday, 05 August 2010
A federal high court presided over by Justice Moha-mmed Idris in Lagos has fixed October 22 to deliver judgment in the suit filed by some aggrieved shareholders of Union Bank Plc, challenging the propriety of the appointment of executive directors into the board of the bank by the Central Bank Governor, Mallam Sanusi Lamido.
The judge arrived at the date after both parties adopted and argued their final written briefs in the matter.The shareholders involved in the suit included Danson Izedonmwen, Edith Izedonmwen and Osato Edo-Osagie, while the defendants were the Union Bank Plc and its Managing Director, Funke Osibodu (who was sued on behalf of herself and others appointed into the board of Union Bank by Sanusi).
Counsel for the shareholders, Mr Chuks Nwachuku, had, while arguing the case, urged the court not to allow Sanusi to get away with the “harm he has done to the banking sector,” adding that the CBN boss had already set a dangerous precedent that must not be allowed to stand.
“I urge the court not to allow Sanusi to get away with what he has done by forcefully taking other people’s investment in the name of whatever reform, because if what he has done is allowed to stand, another person will come someday and do the same to others and nobody will be able to question such act,” Nwachuku said.
Counsel for the defendants, K.U.K. Ekwueme, maintained that the action of the CBN governor in appointing people into the board of the bank was in accordance with various sections of the CBN Act and Banks and Other Financial Institutions Act (BOFIA).
The shareholders wanted the court to restrain Union Bank from parading Osibodu and her colleagues as managing director and executive directors.They also wanted the court to nullify all the steps taken so far by Osibodu on behalf of the bank, especially the annual general meeting of the bank held on December 15, 2009.