The Federal High Court in Lagos yesterday awarded N50,000 to Stanbic IBTC Holdings Plc as punitive cost against its minority shareholders.
A shareholder, Alhaji Muktar Muktar, on behalf of himself and the Trusted Shareholders Association of Stanbic Holdings Plc, is seeking to be joined as a party to a suit by Stanbic IBTC Holdings against the Financial Reporting Council of Nigeria (FRC) and the National Office for Technology Acquisition and Promotion (NOTAP).
The application was billed for hearing yesterday, but counsel for the shareholders, Elder Paul Ananaba (SAN), sought an adjournment.
He said he was not ready to move the application and needed more time.
Besides, he said Stanbic IBTC’s counsel, Prof Fidelis Oditah (SAN, QC), only served him with his reply to the application on Thursday.
However, Oditah said Ananaba should have communicated to him that he was not ready to argue the application.
He, therefore, asked for punitive cost of N100,000.
However, Justice Ibrahim Buba said he would adjourn to enable Ananaba “put in every arsenal he has.”
Rather than the N100,000 Oditah asked for, he awarded N50,000 in his favour.
The applicant, in his motion on notice, is seeking an order joining him as a defendant in the suit.
His prayer is on behalf of the minority shareholders of Stanbic IBTC Holdings.
Muktar said he and the others are necessary parties to the suit and have interests to protect.
Last Wednesday, the court restrained the FRC from obstructing the operations of Stanbic IBTC Holdings.
Justice Ibrahim Buba granted an order of interlocutory injunction restraining it or its officers “from interfering with, or otherwise impeding, obstructing, molesting or hindering” the plaintiffs’ operations.
Stanbic IBTC said FRC, since August 3, has been investigating its audited accounts for the year ended December 2014.
The investigations concern liabilities accrued in the plaintiff’s 2014 accounts in respect of franchise fees owed to Standard Bank of South Africa, the registration of which it said has been pending before NOTAP since 2011.
The plaintiff said FRC labelled the franchise agreement as illegal, and invited IBTC Holdings’ Chief Executive Officers to appear before it.
Following a meeting on October 16, the council informed the plaintiff that it committed criminal offences and that it would be reported to the the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN) and the Securies and Exechage Commission (SEC).
FRC then asked the entire Stanbic IBTC board to meet with the council “to know the extent of your board involvement” in the matter.
But the plaintiff contended that the council has no statutory or other powers to summon the plaintiff’s entire board of directors to a meeting in order to determine their complicity or otherwise in any alleged criminal offence.
In its suit, the plaintiff is asking the court to determine, among others, whether FRC has the power to impose a fine of N1 billion on it.
FRC had last week sanctioned Stanbic IBTC over its audited accounts for 2013 and 2014.
It suspended the Financial Reporting Numbers of the bank’s chairman, Mr. Atedo Peterside, and its chief executive, Mrs. Sola David-Borha.
Justice Buba adjourned to Thursday next week for hearing of the application for “joinder.”
