FBN Holdings Plc has appealed to a Court of Appeal in Lagos to nullify a previous court order that halted its Annual General Meeting (AGM).
The bankโs counsel filed the appeal, Mutalubi Adebayo, SAN, who argued that the lower court lacked jurisdiction to grant the ex-parte order.
Justice Nicholas Oweibo of a Federal High Court granted the initial order. It came after three shareholders of FBN Holdings Plc filed a petition seeking to stop the bankโs AGM scheduled for August 15.
Justice Oweibo ruled on August 9, 2023, that the bank could not proceed with its AGM until pending issues were resolved. Dissatisfied with the ruling, FBN Holdings filed an appeal, urging the appellate court to set aside the ex-parte order and assign the case to a new judge.
Adebayo contended that the lower courtโs decision was flawed. He argued that the petitioners did not meet the conditions under the Federal High Court Rules for hearing the suit.
The respondents have yet to file their reply to the appeal.
Editorial
The legal tussle between FBN Holdings and its shareholders over the halted AGM raises questions about corporate governance and the judiciaryโs role in business matters.
While the shareholders have a right to seek legal redress, the courtโs intervention has disrupted the bankโs scheduled activities, potentially affecting its operations and investor confidence.
The appeal filed by FBN Holdings highlights the complexities of corporate law and the need for clear guidelines on when judicial intervention is appropriate.
It also underscores the importance of due process and the need for courts to exercise caution when granting ex-parte orders with far-reaching implications.
The case serves as a cautionary tale for other corporations and their shareholders.
It emphasizes the need for transparent communication and robust legal frameworks to resolve disputes amicably without resorting to judicial intervention that can be disruptive and costly.
Did You Know?
- FBN Holdings Plc is one of Nigeriaโs largest financial services providers, with a diverse range of services, including banking, asset management, and insurance.
- Ex-parte orders are legal orders issued without the opposing partyโs presence or participation.
- The Nigerian judiciary has been criticized for its slow pace, which can significantly impact business operations and dispute resolutions.
- Corporate governance in Nigeria is guided by the Code of Corporate Governance, established in 2018.
- FBN Holdings has a history dating back to 1894, making it one of the oldest financial institutions in Nigeria.
