N175m Debt: Pharma-Deko Plc Asks Court To Commit Guinness’ Chairman, MD To Prisons
Pharma-Deko Plc yesterday filed an application seeking to commit to prison the Chairman and Managing Director/Chief Executive Officer of Guiness Nigeria Plc, for allegedly violating the provisions of the Company And Alied Matter Act (CAMA).
Pharma-Deko specifically accused the management staffs of Guinness of allegedly violating sections 413 and 415 of the Company and Allied Matters Act (CAMA), which enjoined them to seek the leave of the court before they can deal in their accounts, shares, and issuing of right issues, once a winding-up petition have been filed.
The plaintiff (Pharma-Deko Plc) application for committal to prison proceeding arose in the course of a winding up petition instituted against Guinness Nigeria Plc due to its inability to pay an undisputed contractual debt of N175, 699, 317.99 million.
At the resumed hearing of the winding-up petition, counsel to plaintiff, Chief A. Williams Akinjide (SAN), told Justice Hadizat Rabiu-Shagari that her client has filed two motions in relation to the matter.
According to her, the first motion dated March 30, 2017, is seeking to commit to prison two top officers of Guinness Nigeria Plc, namely: Mr. Babatunde Abayomi Savage, and Mr, Peter Ndegwa, both the Chairman and Managing Director/Chief Executive Officer of Guinness Nigeria Plc respectively.
While the second Motion dated March 21, 2017, according to the lawyer, is seeking an injunction restraining Guinness Nigeria Plc, it’s directors, staff, agents and privies from making any application to Nigerian Stock Exchange Commission (SEC), in respect of Guinness Nigeria Plc’s stocks and shares or dealing in any of its assets.
In urging the court to grant the two motions, Chief Akinjide insisted that the respondents have violated sections 413 and 415 of the Company and Allied Matters Act (CAMA), which enjoined them to seek the leave of the court before they can deal in their accounts, shares, and issuing of right issues, once a winding-up petition have been filed.
She particularly stated that section 415 of CAMA made it clear that the winding-up petition stands once the petition is filed.
But counsel to Guinness Nigeria Plc, M. Mordi, stated that he had filed an application challenging the court’s jurisdiction in entertaining the petition on the ground that the alleged debt was status bar, having been left unchallenged for over eight years.
Mordi said his client’s application dated January 23, 2017, is also seeking for stay of committal proceedings against his client pending when the jurisdiction issue is resolved.
The lawyer particularly stated that as a result of the petition, the Security and Exchange Commission, SEC, has written to the company to put on hold its proposed N40 billion right issues.
He further told the judge that they have kept the draft of N175 million which the petitioner is demanding for with the court’s Deputy Chief Registrar (DCR) pending when the matter is concluded and that there is nothing to fear by the plaintiff.
Justice Rabiu-Shagari, has adjourned the matter till April 10 for hearing of all pending applications.
In the winding-up petition, Pharma-Deko Plc, is urging the court to Wind-up Guinness Nigeria Plc, due to inability to pay an undisputed contractual debt of N175, 699, 317.99 million.