Ex-MD Battles Company Over Termination Of Appointment

Contrary to the deposition of the former Managing Director of Crossworld Securities Limited, a limited liability company, Mr Sunny Oroge, that his appointment was unlawfully terminated, the company alleged that the termination of his appointment was in order. It is also claiming N225,246,175.3 from the former managing director as general and special damages.

The plaintiff, in a suit filed before a Federal high Court in Lagos, against Crossworld Securities, alleged that he was emplored by the company in June, 2005 as deputy managing director and later became the managing director in May, 2006, a position he occupied until September, 2006 when his appointment was terminated based on a petition written against him by a member of staff of the company.

However, the plaintiff averred that he was not invited to the meeting in which the resolution to remove him as managing director was taken, and therefore contends that he remains the company’s managing director. He urged the court to declare his removal wrongful, unlawful, null and void and of no legal effect.

In its defence and counter- claim, the company while denying almost all the averment of Mr. Oroge, alleged that on the 16 September, 2009, the Board of Directors of the company received a petition written by an employee of the company, alleging breach of trust, mismanagement of office and financial improprieties against the plaintiff.

In response to the petition, the Board instructed an independent audit and accounting firm, Messers, SIAO, to investigate the allegation. The report delivered by the SIAO identified several acts of financial impropriety committed by the plaintiff against the company.

At the board meeting of 11 December, 2009, the plaintiff was confronted with the allegation and evidence to support same and he admitted committing some of the improprieties and agreed to make good the losses suffered by the company.

In its counter-claim the company averred that the plaintiff was negligent in the discharge of his duties as the managing director of the company and has caused losses to the company in the following ways, granting loan to companies associated to him without collateral and board approval, making of secret profit, wrongfully obtaining loan and diversion of monies to fictitious bank account.

The company, while urging the court to declare that the plaintiff is guilty of malfeasance and breach of trust in relation to the company in misapplying the money of the company, is claiming N50 million as general damages resulting from the negligence of the plaintiff which has caused the near collapse of the company and N175,246,175.03 particulars of which are monies invested in Growth Savy Investment Company which he embezzled, N99,683,794 difference with the sum of purchase of his official vehicle, N1,050,000. The sum used as clearing fees for his wife’s car N400,000, liabilities accrued to the company as a result of the loans granted by the plaintiff without collateral and N44,992,884.30 liability accrued from the plaintiff’s negligence to collect and return clients stocks used as collateral after the clients have discharged their liabilities and interest on the said sum.

Justice Binta Murtala Nyako has adjourned the case till 1 November, 2011.