[2003]DLCA1265January 16, 2003Court of Appeal

SANYO ELECTRIC TRADING CO vs. QUACOOPOME

The plaintiff, Sanyo Electric Trading Co Ltd, instituted a writ of summons against the defendant, Quacoopome, claiming damages for breach of an oral contract appointing the plaintiff as director of the defendant company since 1970, for which the plaintiff alleged non-payment of director's fees and lump sum remuneration. The defendant company is incorporated in Japan and not registered in Ghana but holds shares in Ghana Sanyo Co Ltd, a Ghanaian company. The plaintiff alleged that the defendant carried on business in Ghana through Ghana Sanyo Co Ltd. The defendant entered appearance under protest, challenging the jurisdiction of the Ghanaian courts, asserting it was not registered or carrying on business in Ghana except for shareholding.

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JUDGEMENT Asiamah JA. This is an interlocutory appeal against the ruling of the High Court, Accra dated 21 May 2001. The plaintiff in the action instituted a writ of summons against the defendant seeking the following reliefs: “(1) Damages for breach of an oral contract made in or about 1970, appointing the plaintiff director of the defendant company, under and by virtue of which the plaintiff has worked and rendered services as director of the defendant company, for which the defendant have failed or refused or both to pay the plaintiff’s reasonable director’s fees and lump sum remuneration as agreed. (2) Mesne profit. (3) Interest on the said amount at the prevailing bank rate.” Upon the service of the writ of summons and statement of claim on Sanyo Electric Co Ltd on 9 February 2001, the Sanyo Electric Co Ltd entered appearance under protest through its general manager. The rationale underpinning the appearance under protest is imbedded in paragraphs (6) an...