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A'COURT DISMISSES UNION BANK SHAREHOLDERS' SUIT

By NBF News
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By BARTHOLOMEW MADUKWE, CHIDIMMA OKEREAFOR & NANCY OGBUJI

LAGOS - The Court of Appeal sitting in Lagos, yesterday, dismissed the appeal by some aggrieved shareholders of Union Bank of Nigeria, seeking to restrain the Governor of Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, from going ahead with his plan to sell the shareholdings of the bank.

The appellate court upheld the decision of the lower court, adding that the appeal was not meritoriousĀ  andĀ  was subsequently dismissed.

The shareholders, led by President of Progressive Shareholders Association, PSA, Mr Boniface Okezie, had prayed the appellate court to set aside the ruling of Justice Binta Murtala-Nyako of the Federal High Court in Lagos.

The lower court, had in its ruling on the preliminary objections by the respondents, struck out the suit on the ground that the plaintiffs failed to raise questions for determination in their originating summons.

The shareholders, including Rasheed Olatundu, Basil Ubah and Waheed Sonibare had in their appeal urged the court to set-aside the ruling of the lower court and exercise its powers under Section 16 of the Court of Appeal Act to hear and determine the applicants/appellants originating summons.

The appellants maintained that the method of originating summons to be used for commencing applications under the Companies Proceedings Rules is Form 2.

The shareholders had sought to restrain Sanusi and the incumbent management of Union bank from: 'entering into any arrangement with any person, institution or authority, including themselves and the Federal Government to dispose any share of the bank or to transfer its control, management and assets to any person or authority' pending the determination of an appeal.'