Two Company Directors Dragged To Court

In a bid to forestall total take over of his company, a Lagos businessman, Augustine O. Chine and his company, BMC Bullion Movement, have dragged Leasing Company of Nigeria Limited and its managing director, David Nwachukwu, before a Federal High Court in Lagos.

Joined as co-defendants are Joe Billy Ekwunife, a director and friend and an associate of the two directors of the company, Chidi Umeano.

According to the suit filed before Justice Okechukwu Okeke by a Lagos lawyer, Dr. Joseph Nwobike (SAN) on behalf of the plaintiff, it was alleged that sometimes in 2007, BMC Bullion Movement was granted a loan of N70 million by Leasing Company of Nigeria Limited made up of N60 million convertible debenture and N10 million equity contribution for 25 per cent of the paid up capital in the company while it invested the N60 million in the purchase of ten armoured bullion vans in pursuit of its business.

The loan was serviced until sometimes in 2008, when six out of the 10 bullion vans were damaged as a result of the various armed robbery attacks in the course of carrying cash. However, Leasing Company of Nigeria, who was aware of this incidents, instituted a suit against the company to recover the loan during the pendency of this suit.

Lawrence Okonkwo, who is the legal adviser to BMC Bullion Movement Company, in his sworn affidavit, averred that David Nwachukwu, Joe Billy Ekwunife and Leasing Company of Nigeria induced Augustine Chime to execute an undated memorandum of understanding by which they were to take over BMC Bullion Movement Company and appoint Chidi Umeano as the managing director and chief executive officer of the company whereas it was not involved in any transaction between Mr. Augustine Chime and the defendants.

Okonkwo further averred that the N3 million severance/salary paid to Mr. Augustine Chine by the two directors of Leasing Company of Nigeria was done in bad faith and it was intended to overreach and prejudice him.

The board of directors of BMC Bullion Company never considered the purported memorandum of understanding and consequently, there was no board resolution passed. Therefore, the memorandum of understanding is ultra vires.

The defendant, as a result of the MOU, has been sending their officers, proxies and agents to harass and intimidate Mr. Augustine Chine to forcefully take over the management of the company and remove him from office and replace him with their agent.

The plaintiffs are now urging the court not only to set aside the memorandum of understanding but issue an order of perpetual injunction restraining the defendants and their agents from interfering in the management of BMC Bullion Movement Company.

The plaintiffs also want the court to restrict Messrs. Joe Billy Ekwunife and David Nwachukwu from using their position as directors of BMC Bullion Movement Company to intimidate, harass and prevent Mr. Augustine Chine from carrying out his lawful duty as managing director/chief executive officer of the company.

The case has been adjourned till 13 May, 2011 for further hearing.