2nd December, 2010
In a bid to save a limited liability company, Big Treat Plc, from total collapse, Securities and Exchange Commission (SEC), has taken over control of the company.
In addition to the take over of the company, a Federal High Court has also restrained its directors and their agents from withdrawing money from its accounts in any bank, while the Inspector General of Police has been directed to provide adequate protection for the assets of the company nationwide.
The order of the court was sequel to a suit filed on behalf of Securities and Exchange Commission by a Lagos lawyer, Barrister Uche Obi, against Big Treat Plc and three of its directors, Pamela Wu, Harries Wu, Steve Wu and three of their companies, Skyone, New Frontier Engineering and Construction Company and Skyone Group of Companies.
In an affidavit sworn to by a Senior Manager of Securities and Exchange Commission, Mr. John Onoja, it was alleged that sequel to the analysis of the 2008 audit account of the Big Treat and whistle blowing of concerned individuals, an inspection of the company was approved.
The panel, in its findings, allegedly discovered wrongful and fraudulent transfer of the company’s money to some companies owned and run by the Pamela Wu, Steve Wu and Haries Wu, using Steve as single signatory mandated to transfer funds from the account of Big Treat to Newfrontiers Engineering Company, while diversion of Big Treat’s proceeds of sales, unilateral withdrawals of funds by Pamela and Steve, forgery of vouchers to facilitate payment of funds to Skyone Group of Companies and others and unilateral corporate decisions by Pamela Wu, were discovered.
The panel also discovered abuse of internal control system, reckless sacking of personnel, false and unapproved board of directors, composition and fraudulent manipulation of board and breakdown of corporate governance.
Consequently, the plaintiff urged the court to grant the order restraining the defendants, foreign nationals from Asia who could flee the country with the company’s money thereby occasioning huge losses to the company and its innocent investors which include pensioners.
After hearing the submission of Barrister Uche Obi, the presiding judge, Justice Mohammed Idris, restrained the defendants from withdrawing from the accounts of the company as well as disturbing Securities and Exchange Commission from overseeing its affairs.
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