Shareholders drag Central Bank of Nigeria to court - The Incorporated Trustees of Proactive Shareholders Association of Nigeria, Tuesday, asked a Federal High Court sitting in Abuja to void the recent nationalization of some commercial banks by the Central Bank of Nigeria. The shareholders alongside the Incorporated Trustees of Truth and Transparency Initiative are praying the high court to determine whether by extant laws in the country, the Central Bank had the powers to carry out such exercise in the absence of an Act of the National Assembly. The plaintiffs equally joined 17 other defendants in the suit they entered at the high court registry through their counsel, Mr Nnodu Okeke yesterday. The other listed defendants in the suit were Afribank PLC, Bank PHB, Spring Bank PLC, Mainstreet Bank Limited, Keystone Bank Limited, Enterprise Bank Limited, Mr. Gideon Agbedo, Mr. Benson Igbanoi, and Mr. Barnabas Olowoselu.

Others are Mr. Falalu Bello, Mrs Faith Tuedor Matthew, Mr. Oti Ikomi, Mr. Emeka Onwuka, Mr. Ahmed Kuru and the Corporate Affairs Commission (CAC).

Specifically, the plaintiffs in their originating summons, urged the court to determine whether the apex bank can nationalize other banks without consultation with the shareholders of such banks and whether it can transfer such nationalized banks to private individuals or companies formed by private individuals.

Besides, the shareholders want the court to determine whether the conversion of 2nd, 3rd, and 4th defendants to 5th, 6th and 7th defendants respectively is legal, as well as, whether in the event of nationalization of a bank, the 1st defendant can choose whomsoever it desires as the directors of the bank without recourse to approval of the National Assembly.

They equally want the court to determine whether the action of CAC in registering Shoko Chukin Limited, Resolution Limited, Kinki Osaka Custodian Limited which they said changed their names to or metamorphosed into 5th, 6th and 7th defendants respectively, was in accordance with the provisions of Section 27(2)(b) of the Companies and Allied Matters (CAMA).

Consequently, they are seeking a declaration that by the extant laws of the country, there is no provision for nationalization of banks in Nigeria and that even if CBN could nationalize banks, it cannot be done by mere pronouncement but by an Act of the National Assembly.

Ikechukwu Nnochiri

Vanguard/26/10/2011