Sanusi lacks absolute power
to sack bank chiefs – Court By Kemi Obasola
Friday, 17 Jun 2011
A Federal High Court in Lagos
on Thursday said the Governor
of the Central Bank of Nigeria,
Mallam Lamido Sanusi, lacked
the absolute power to sack
bank chiefs without disclosing the findings and
recommendations of the
special examination conducted
into the books of the respective
banks to the affected directors. Sanusi had removed some bank
directors in the wake of the
banking reform exercise of
2009. The CBN governor had claimed
that the removal of the bank
chiefs became expedient
following the revelations
contained in a special
examination conducted into the books of all the 24 banks in
the country. Sanusi said the examination
showed that the affected
directors mismanaged the
affairs of their respective banks
and also put the banks in grave
situation. According to Justice James
Tsoho, though the CBN has
power under Section 35 of the
Banks and Other Financial
Institutions Act to regulate and
control the business of banking, when such powers
will fundamentally affect
interested parties, there should
be disclosure. Justice Tsoho, who ruled on a
suit filed by some aggrieved
shareholders of Afribank
against Sanusi’s action, dismissed the preliminary
objections filed by the CBN and
its appointed directors, saying
the objections could not be
sustained in law. The court held that the
shareholders were able to
convince the court that there
was lack of good faith towards
them and Afribank in the
exercise of statutory powers conferred on the CBN and its
governor. The shareholders, who filed the
suit through their lawyer,
Onyebuchi Aniakor, include,
Moses Oke, Rasak Mumuni,
Akinsanya Sunday, Suleiman
Babatunde and Igba Olatomide. Defendants in the suit include
Afribank MD, Nebolisa Arah,
and four executive directors of
the bank - Nnamdi Anammah,
Isaac Alofoje, Joke Giwa and
Stephen Adah. The list of defendants also
include Afribank chairman, Osa
Osunde; Chkwuemeka
Okwuosa, David Lawuyi, Ashim
Oyekan, Bala Zakariya ‘U, Rufai Muhammed and the Corporate
Affairs Commission. The CBN had contended that
the court lacked jurisdiction to
entertain the suit because the
affidavit in support of the
plaintiffs’ suit did not allege that Sanusi’s action was done in bad faith. But the court overruled the
objection and held that it could
not be sustained in law. The defendants have, however,
appealed against the ruling.
They have also filed a motion
for stay of execution of the
ruling. The case has been adjourned to
September 26.
Source
punchng.com/Articl.aspx?theartic=Art20110617295473

donsoft:

Sanusi lacks absolute power
to sack bank chiefs – Court By Kemi Obasola
Friday, 17 Jun 2011
A Federal High Court in Lagos
on Thursday said the Governor
of the Central Bank of Nigeria,
Mallam Lamido Sanusi, lacked
the absolute power to sack
bank chiefs without disclosing the findings and
recommendations of the
special examination conducted
into the books of the respective
banks to the affected directors. Sanusi had removed some bank
directors in the wake of the
banking reform exercise of
2009. The CBN governor had claimed
that the removal of the bank
chiefs became expedient
following the revelations
contained in a special
examination conducted into the books of all the 24 banks in
the country. Sanusi said the examination
showed that the affected
directors mismanaged the
affairs of their respective banks
and also put the banks in grave
situation. According to Justice James
Tsoho, though the CBN has
power under Section 35 of the
Banks and Other Financial
Institutions Act to regulate and
control the business of banking, when such powers
will fundamentally affect
interested parties, there should
be disclosure. Justice Tsoho, who ruled on a
suit filed by some aggrieved
shareholders of Afribank
against Sanusi’s action, dismissed the preliminary
objections filed by the CBN and
its appointed directors, saying
the objections could not be
sustained in law. The court held that the
shareholders were able to
convince the court that there
was lack of good faith towards
them and Afribank in the
exercise of statutory powers conferred on the CBN and its
governor. The shareholders, who filed the
suit through their lawyer,
Onyebuchi Aniakor, include,
Moses Oke, Rasak Mumuni,
Akinsanya Sunday, Suleiman
Babatunde and Igba Olatomide. Defendants in the suit include
Afribank MD, Nebolisa Arah,
and four executive directors of
the bank - Nnamdi Anammah,
Isaac Alofoje, Joke Giwa and
Stephen Adah. The list of defendants also
include Afribank chairman, Osa
Osunde; Chkwuemeka
Okwuosa, David Lawuyi, Ashim
Oyekan, Bala Zakariya ‘U, Rufai Muhammed and the Corporate
Affairs Commission. The CBN had contended that
the court lacked jurisdiction to
entertain the suit because the
affidavit in support of the
plaintiffs’ suit did not allege that Sanusi’s action was done in bad faith. But the court overruled the
objection and held that it could
not be sustained in law. The defendants have, however,
appealed against the ruling.
They have also filed a motion
for stay of execution of the
ruling. The case has been adjourned to
September 26.
Source
punchng.com/Articl.aspx?theartic=Art20110617295473

after telling us what we already know, the further delay in concluding this case is what i dont know.
our judicial system is just a pack of trash