Justice Ambrose Lewis-Allagoa of a Federal High Court sitting in Lagos has set aside the transfer of Arik Air Limited’s assets by the Assets Management Company of Nigeria (AMCON) to another company to run its operations.
Acting as receiver/manager, the group head, AMCON, Kamilu Alaba Omokide, handed the management of Arik Air to NG Eagle Limited and Super Barvo Limited.
But not satisfied with the decision, the management of Arik Air rushed to court to set aside the decision.
Arik Air led by its founder, Johnson Arumemi Ikhide and co-plaintiff, Mary Arumemi Ikhide, dragged AMCON, its group head, Mr Omokide, NG Eagle Limited, Super Bravo Limited and Nigeria Civil Aviation Authority before the court over the takeover of Arik’s assets and management.
In the suit, the plaintiffs prayed the court for the following reliefs: A declaration that the duty imposed on the 1st defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk air Limited.
A declaration that the transfer of Arik Air Limited assets to the 3rd Defendant (NG Eagle Limited) and/or 5th Defendant (Super Bravo Limited) by the 1st Defendant (Omokide) was done In bad faith and is a violation of the 1st Defendant’s (Arumemi) fiduciary duty to Arik air Limited as a whole.
A declaration that the appointment of the 1st defendant as receiver/manager of Arik Air Limited is improper and wrongful.
A declaration that the directors and shareholders of the Arik Air Limited, including the Plaintiffs still have rights and powers regarding Arik Air Limited save as regards to the day to day management of the Plaintiff.
After listening to arguments by counsel to parties in the matter, Justice Lewis-Allagoa set aside the takeover of Arik Air by AMCON.
He also directed the 1st and 2nd defendants to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days of the making of the order.
He also told the court that the decision to appoint a receiver/manager for Arik was wrongful and improper.
The court held, “That a declaration is made that the duty imposed on the 1st defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk air Limited.
“That a declaration is made that the transfer of Arik Air Limited assets to the 3% defendant and/or 5th defendant by the 1st defendant was done in bad faith and is a violation of the 1st defendant’s fiduciary duty to Arik air Limited s a whole as imposed by Section 553 of the Companies and Allied Matters Act 2020.
“That a declaration is made that the 2nd defendant is vicariously liable for the acts of the 1st defendant.
“That a declaration is made that in spite of the appointment of the 1st defendant as receiver/manager of Arik Air Limited, the organs of Arik Air Limited including directors and shareholders subsist.
“That a declaration is made that the directors and shareholders of Arik Air Limited, including the plaintiffs still have rights and powers regarding Arik Air Limited save as’ regards to the day to day management of the plaintiff.
“That an order is granted setting aside the transfer of Arik Air Limited’s assets by the 1st Defendant or 2nd Defendant to the 3rd Defendant and/or 5th Defendant.
“That an Order is granted directing the 1st and 2nd Defendants to allow the Directors and shareholders of Arik Air Limited unfettered access to their offices, premises of the! Plaintiff, facilities and staff required for the discharge of their functions.
“That an Order is granted directing the 1st and 2nd Defendants to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days of the making of this order.”
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