Edmund Chinonye Obiagwu Vs Universal Insurance Plc & 3 ORS
This action was filed by the Plaintiff at the Federal High Court, Lagos against Universal Insurance Plc and 3 others including the Commission by a writ of Summons dated October 28, 2008. The plaintiff averred that he is an investor in Universal Insurance Plc. The plaintiff alleged that sometime between October 24, 2007 to November 17, 2007, Universal Insurance Plc issued a private placement for 5, 000,000,000 ordinary shares of 50K each and Afribank Capital Market Ltd was the lead Issuing House while Afribank Registrars Ltd, herein referred to as the 3rd Defendant acted as the Registrar to the private placement.
The Plaintiff averred that he applied for 3, 800,000 units of shares in the said private placement of Universal Insurance at the quoted price through the 1st and 3rd Defendants at the value of N 3, 610,000, but both the issuer and its registrar in the offer had failed and refused to allot the said units of shares to him, instead the 1st and 3rd respondents returned to him the sum of N 3, 068,500 out of N3, 610,000 being 85% of the unalloted units of shares he subscribed for.
The Plaintiff also averred that the shares allotted to him only represented 25 % of the units of shares he subscribed to and that 1st to 3rd Defendants have a legal obligation to allot to him all the units of shares he paid for. The Plaintiff is therefore seeking the following reliefs:
1. A declaration that the 1st to 3rd Defendants are under obligation to allot to him in full the total 3, 800,000 worth of shares he subscribed for during the private placement.
2. An order that the Defendants disclose the criteria for the return money of investor including directors and promoters to ascertain whether it was the same criteria used for the plaintiff.
3. An order directing the Commission to audit and report the procedures followed in the 1st respondent private placement and its subsequent public offer, in order to ensure that there was no discretionary dealing with respect to allotment of shares to investors.
The Plaintiff alleged that the Commission did not regulate the offer for private placement by the 1st to 3rd Defendants which left the investor vulnerable to open injustice and unprotected treatment.