A Federal High Court sitting in Lagos on
Friday nullified the election of Aliko Dangote
as the president and chairman of the
Nigerian Stock Exchange (NSE). This was the
ruling in a suit filed by some aggrieved
shareholders of African Petroleum (AP).
“An order is hereby made nullifying, vacating
and setting aside all steps taken by the 13th
defendant (NSE) in purporting to elect the
11th defendant (Mr. Dangote) as the
president of the Nigerian Stock Exchange,
including but not limited to the entire
purported election held on the 6th day of
August 2009, during the pendency of this
suit and in disregard of the positive order of
this court made on 4th of August 2009,” the
justice, Akanbi Lambo, said while delivering
the judgement.
Aggrieved shareholders
15 shareholders of AP had filed a legal action
against Mr. Dangote, Nova Finance and
Securities Limited and 12 others over an
alleged massive manipulation of AP shares. In
addition to their originating summons, the
applicants urged the court to grant an order
of interlocutory injunction.
Accordingly, the shareholders approached
the court for an order restraining the NSE
and the Securities & Exchange Commission
(SEC) from retaining Mr. Dangote as the 1st
Vice president and member of the council of
the NSE, pending the determination of the
suit. They also sought an order restraining
Mr. Dangote from remaining the 1st Vice
President and member of the council of the
NSE.
However, during the proceedings in the suit
on 4 August, 2009, the court presided over
by Mohammed Liman ordered all parties to
maintain status quo pending the hearing of
the suit.
Noting that Mr. Liman could not continue in
the matter because an allegation of bias was
levied against him by the defendants, the
suit was transferred to Mr. Lambo, who is
now presiding.
Election despite court order
At the next court hearing, the applicants filed
a motion on notice praying for an order of
court nullifying the election of Mr. Dangote as
president of the council of the NSE, during
the pendency of the suit by the aggrieved AP
shareholders. The election was allegedly
conducted on 6 August 2009, before the
next court sitting.
The motion of the applicants was predicated
on the fact that despite the order of the court
asking all parties to maintain status quo, the
defendant went on to elect Mr. Dangote as its
President.
Ruling
While ruling on the motion filed by the
applicants, the court held that there was
indeed a positive order of this court made on
4 August 2009 commanding parties to
maintain status quo. Mr. Lambo held that the
13th and 14th defendants deliberately defied
the order of the court.
“The 13th and 14th (SEC) respondents, in
spite of that order and in flagrant and
reckless disregard of same, went ahead not
only permitting the 11th respondent, Alhaji
Aliko Dangote as a member of the council,
but also putting him up to contest election as
the National President of the council. That is
certainly a deliberate and contemptuous
disregard of the order of the court.” Justice
Lambo said.
He added that “I see the deliberate act of
officials and executives, who operate the NSE
and SEC as a subtle strive and exploration by
devious or dubious way to circumvent and
render nugatory the true intention of the
order of the court.”
In the ruling, Mr. Lambo urged the
government to look for ways to punish any
of it agents that default in carrying out court
orders.
“The government should also look inward
for a way to sanction domestically, any
government functionaries found in
disobedience of the court’s order,” he said.
“This is the only way ‘the boys’ and those
claiming to be close to power and who are
laws unto themselves can be checkmated, so
that genuine desire of the present
administration to enthrone true and genuine
democracy can be attained.”
After the ruling, the matter was adjourned to
16 March 2010, for continuation of the
substantive suit filed by the shareholders.
Reactions
Sunny Nwosu, national coordinator of the
Independent Shareholders Association of
Nigeria (ISAN), while reaction to the ruling,
described the removal of Mr. Dangote as
triumph for the rule of law.
Fola Sowemimo & Co, the law firm
representing Mr. Dangote, in it’s reaction to
the court ruling, said “Our client is obviously
dissatisfied with this ruling. His position
remains that he believes in the Nigerian
judicial system and what it stands for, and he
is confident that justice will be served and he
will be vindicated. Tempting as it is to join
issues and give the background to some of
our concerns, the dignity of our profession
requires that we follow a certain course of
action. We will abide by that and as such a
notice of appeal as well as application for
stay of execution of the order has been filed
this afternoon. We look forward to justice
taking its course.”
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