Illegal Shares Transfer: Bank PHB Shareholders Slams N58.6b Suit On CBN, AMCON, Others

Illegal Shares Transfer: Bank PHB Shareholders Slams N58.6b Suit On CBN, AMCON, Others

Some aggrieved shareholders of the defunct, Bank PHB Plc, had dragged the Central Bank of Nigeria (CBN) and Asset Management Cooperation of Nigeria (AMCON) before the Federal High Court in Lagos over the alleged illegal transfer of their shares to Keystone Bank without compensation. 

The shareholders apart from urging the court to set aside the transfer are also demanding the sum of N38.6 billion from the defendants, being "fair compensation" to them for the value of their investment in Bank PHB Plc. 

The plaintiffs, who also want the court to set aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB, are further demanding the sum of N20 billion as damages for the loss of value of their investments in Bank PHB. 

Apart from CBN and AMCON, other joined in the suit filed by nine shareholders on behalf of others whose names were on the register of members as at October 2, 2009, are: Keystone Bank, the Attorney-General of the Federation and the Nigeria Deposit Insurance Corporation (NDIC). 

The plaintiffs are also praying the court to declare that the action amounted to unlawful compulsory acquisition of their investment, and is therefore unconstitutional, arbitrary, null and void. 

They also want the court to hold that the purported nationalisation of their investments without being paid compensation is unlawful and contravenes Section 44 of the 1999 Constitution. 

The shareholders, in a statement of claim attached to the suit, states that NDIC had on August 5, 2011, wrote to the Managing Director of Bank PHB informing him that the bank's assets and liabilities has been transfered to Keystone Bank, and that NDIC did so without any form of adequate compensation being paid to the them. 

However, the defendants had filed a preliminary objections to the suit asking the court to strike it out for lack of jurisdiction. 

While arguing the objection on Thursday, CBN's counsel, Kola Awodein (SAN) submitted that the plaintiffs did not file the action properly. 

According to the lawyer, though the plaintiffs claim is contentious, so they should come by writ of summons, not originating summons. 

"Its not sentiment. It's about the law. If you're coming before the court, you must come properly. I urge your Lordship to strike out the matter," he said. 

But Chief Anthony Idigbe (SAN), who represented the shareholders before the court, urged the court to dismiss the defendants' objections because it lacks merit. 

Idigbe claimed that it was the duty of the defendants to protected the shareholders' investments which they failed to do. 

He said, "NDIC just took the bank and gave to AMCON without taking the shareholders into consideration. 

"We urge the court to dismiss all the preliminary objections. We're ready to move our originating summons," Idigbe said. 

Justice Mohammed Yusuna has adjourned the case till March 2, for ruling.