Facts: Background story

By a resolution of FBN's board of directors dated February 24 2000, Longe was appointed managing director and chief executive officer of FBN. Before then, Longe had been FBN's executive director. In 2002 Longe was alleged to have negligently granted an unauthorized facility to Investors International (London) Limited for the acquisition of shares in NITEL, which resulted in losses for FBN. Therefore, on April 22 2002 Longe was suspended by the board, and on June 13 2002 the board convened a meeting during which it revoked Longe's appointment.

Consequently, Longe brought an action against FBN under Section 266 of the act on the grounds that (i) he was entitled to be given notice of the meeting revoking his appointment, and (ii) as he was not given notice of the meeting, the meeting was invalid and accordingly all decisions taken at that meeting were unlawful, null and void and incapable of having any legal effect, in particular the decision to revoke his appointment. FBN argued that due to Longe's suspension by the board, he was not entitled to further notice of the meeting at which his appointment was revoked. The Federal High Court and the Court of Appeal both dismissed Longe's claims, and Longe appealed further to the Supreme Court.

Decision of the court

In March 2010, the Supreme Court of Nigeria issued a landmark judgment in favour of plaintiff Bernard Longe. The court also issued a declaration that the board of directors of First Bank of Nigeria Plc (FBN), which sacked Longe as managing director, could not lawfully hold a board meeting without giving notice to Longe, and that all decisions taken at any such meeting were unlawful, null and void and incapable of having any legal effect.
In effect, FBN's decision to sack Longe, which was made at a board meeting held in his absence, was illegal, null and void as it did not follow due process under Sections 266(1) and (2) of the Companies and Allied Matters Act (CAMA) 1990.


Therefore, the decision to remove Longe was a clear violation of the law, and such violation must attract the penalty prescribed under Section 266(3) of the act - that is, that failure to give notice invalidates the meeting and any decisions made therein.

Thus, the court declared that Longe was still the managing director and chief executive officer of FBN and as such entitled to all remunerations within the preceding 10yrs, as he was in fact, a director of First Bank Nigeria amounting to #10bn.

Full facts of the case | Commentary | Further research

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I think I'm gonna sue MTN, they disturb me everyday with 055228 call.

MTN is next on my list

ToriBlue:
I think I'm gonna sue MTN, they disturb me everyday with 055228 call.

Before you do that, read the facts of the case. A shitt-ton of money awaits.

princechurchill:
MTN is next on my list

This is what happens when you know your rights as well as how to exercise those rights!

I'm happy for you Mr Longe!!

greatgod2012:
This is what happens when you know your rights as well as how to exercise those rights!

I'm happy for you Mr Longe!!

Mostly entails having the cash to pursue such justice! It took him almost 10 yrs!

Who do I sue now, since everyone has taken the whistle blowing job.

Politicalidiot:


Mostly entails having the cash to pursue such justice! It took him almost 10 yrs!

Some people have this money but never knew anything about having any right not to talk of exercising those rights!

Jesu Gbami

jesu

greatgod2012:





Some people have this money but never knew anything about having any right not to talk of exercising those rights!

That's the thing with us Nigerians. WE are professionals when it comes to "sleeping on our rights". That's why wen i see an employee working under horrible conditions (nee foreigners ), I will be like "na you cause am! (in my mind oo).