Court gavel
Federal High Court in Abuja has invalidated the Corporate Affairs Commission’s (CAC) unauthorized replacement of the Incorporated Trustees of the Association of Local Governments of Nigeria (ALGON), ruling that the action violated legal provisions.
Delivering the judgment, Justice Obiora Egwuatu declared that the CAC’s decision to alter ALGON’s trustees was unlawful, as it failed to adhere to the relevant legal framework. Citing the Supreme Court’s ruling in Riyuk and Incorporated Trustees of ALGON, Justice Egwuatu emphasized that ALGON, as a private organization, is not subject to directives from the House of Representatives.
The CAC had reportedly removed ALGON’s trustees based on a resolution by the House of Representatives Committee on States and Local Governments. However, the affected trustees—Chukwudi Ezinwa, Gabriel Ugor, Shaba Shuaibu, Benjamin Kure-Solomon, and Sani Hassan (listed as the 1st to 6th plaintiffs in the case marked FHC/ABJ/CS/1980/2024)—challenged the action in court, with Joe Agi, SAN, representing them.
In their suit, the plaintiffs raised two key issues for determination. They asked the court to assess whether the CAC’s removal of their names as ALGON trustees, based on the House Committee’s investigation and resolution, violated their right to fair hearing under Section 851(4) of the Companies and Allied Matters Act (CAMA) 2020 and Section 36 of the 1999 Constitution (as amended). They also questioned whether the CAC could legally appoint new trustees for ALGON based solely on the House Committee’s resolution, given the mandatory provisions of Sections 834 and 835 of CAMA.
The plaintiffs sought several reliefs, including a declaration that their removal without a valid resolution from ALGON’s general meeting was illegal and void. They argued that the action breached their right to fair hearing as guaranteed by Section 851(3&4) of CAMA. Additionally, they requested an order directing the CAC to nullify the status report issued on August 20, 2024, and restore the December 12, 2023, report as the authentic record of ALGON’s trustees. They also sought a perpetual injunction to prevent the CAC from further tampering with ALGON’s trustee status without a valid resolution from the association’s general meeting.
In a 17-paragraph affidavit, plaintiff Shaba Shuaibu stated that neither the House Committee members nor any ALGON trustee had convened a general meeting to authorize the change in trustees. He further noted that the CAC’s Registrar General failed to grant the plaintiffs a hearing before or after acting on the House Committee’s resolution, as required by law.
In his ruling, Justice Egwuatu held that the CAC’s removal of ALGON’s trustees was illegal, null, and void for non-compliance with legal procedures. He ordered the immediate reinstatement of the affected trustees and directed the CAC to comply with the court’s decision.
Speaking to journalists after the judgment, Oladimeji Ekengba, counsel for the ALGON trustees, affirmed that the ruling confirms the plaintiffs as the legitimate trustees of the association. (NAN)
