Disable Preloader

CaseLaw

A.G Enugu vs. AVOP Plc (1995) CLR 4(L) (SC)

Judgement delivered on April 13th 1995

Brief

  • Right of action
  • Right of appeal
  • Resolutions

Facts

Before the Federal High Court sitting at Enugu where two suits were pending on the matter, the respondent, as applicant, filed two motions. The first was filed on 24th May. 1993:

"for an order of interlocutory injunction restraining the government of Enugu State from interfering with the running or operation of the plaintiff as contained in paragraphs 26.01 and 27.01 of its undated white paper until the determination of the above suit."

The motion was supported by a 21 -paragraph affidavit and one exhibit. The Federal High Court made an interlocutory order of injunction against the Government of Enugu State retraining the Government from interfering with the running of operation of the respondent.

On 22nd June 1993. the respondent filed another motion:

"for an order sanctioning the resolution of the Board of Directors of the plaintiff/applicant to close down the factory at Nachi."

The motion was supported by a 19-paragraph affidavit. Three exhibits were annexed to the motion.

After hearing argument by counsel on both side on the motion filed on 22nd June, 1993 the teamed trial Judge grained the motion, though not in exactly the same language or tenor. In essence, the order of the court was to the effect that the factory of the respondent be closed forthwith until, during the pendency of the substantive suit, the Directors decided to open the factory and to re-activate operations in the factory. The order was to be effective only during the pendency of the substantive suit.

Aggrieved by the ruling of the learned trial Judge in respect of the motion of 22nd June. 1993, the Court of Appeal granted a motion lor stay of execution of the ruling of the trial court

The respondent appealed against the decision of the Court of Appeal to the Supreme Court. The proceedings herein is in respect of the appellant's appeal against the decision of the trial court granting the application of 22nd June. 1993.

Issues

Whether a circular resolution adopted by the directors is binding on the...

Read More