Court Restrains Chinese From Operating Bank Account

The chairman of Chinese Community Association in Nigeria, Mr. Jacob Chien Kuo Wood and his business counterpart, Mr. Chen Hill, who are the managing director and director of Golden Forest International Company respectively, have been barred from operating the company’s account by a Federal High Court sitting in Lagos, South West Nigeria.

The two Chinese businessmen and their agents were also restrained from entering into or executing any further lease agreement or collecting further rent from MTN Nigeria in respect of Golden Plaza situated at Falomo, Ikoyi, Lagos, pending the hearing and final determination of the suit filed before the court against them by two directors of the company.

The court’s order was sequel to a suit filed before the court by a Lagos lawyer, Ade Oyebanji, on behalf of two directors of Golden Forest International Limited, Xia Jun and Chen Liang, against Jacob Chien Kuo Wood, the managing director.

Also joined as co-respondent are Golden Forest International Limited, MTN Nigeria and Zenith International Bank Plc.

In an affidavit sworn to by Xian Jun, it was averred that the company procured a lease of Golden Plaza at LSDPC Complex, Awolowo Road, Falomo, Ikoyi, from the Lagos State Development and Property Corporation for initial term of ten years commencing from 2003.

Consequently, Golden Forest Company subleased four floors of the building to MTN Nigeria commencing from October, 2004 for a term of three years for N120 million.

However, Chen Hiu and Jacob Chen Kuo Wood purportedly representing Golden Forest Company executed a second addendum to the main lease agreement in favour of MTN Nigeria dated 1 July, 2009, granting additional seven floors to the communication company without a resolution of the company’s board.

Mr. Xian Jun alleged further that N1,017,676,967 was collected from MTN as consideration for the sublease without the knowledge of the plaintiffs and in addition, the second person who signed as director on the addendum lease agreement on behalf of the company was not a director, shareholder or secretary of the company as it has no secretary since its incorporation.

The signature has also been confirmed by police forensic document examiner as not belonging to any of the directors of the company.

The deponent averred further that the addendum to the main sublease agreement is contrary to the article of association of the company and therefore urged the court to restrain the two directors from withdrawing the said money domiciled at Zenith International Bank as they have been depleting the account on daily basis without any regard to their interest.

After listening to the submission of Mr. Ade Oyebanji, Justice Okechukwu Okeke, while restraining Chen Hui and Jacob Chieh Kuo Wood from withdrawing money from the company’s account and stopping further lease agreement, ordered that all court processes filed in this suit and the court’s order should be served on the respondents.