[2005]DLSC2413 • April 27, 2005 • Supreme Court •
ROBERT WOOD vs. OXYAIR LIMITED KWABENA DARKO
The first plaintiff and two others contributed services and funds towards establishing an oxygen manufacturing plant under an understanding with the second defendant that they would receive 40% shares in the first defendant company. The second defendant, managing director and financial controller, failed to allocate these shares, leading to a breach of agreement claim. The defendants counterclaimed for damages related to production stoppage but lost this claim after moving the plant.
read moreDR. DATE-BAH, J.S.C: The material facts of this case, as established by the learned trial judge, were as follows: the first plaintiff played a leading role in shaping the course of a successful implementation of the second defendant’s dream of establishing a viable and profitable oxygen-manufacturing plant in Ghana. The first plaintiff and the two other plaintiffs made contributions towards the setting up of the defendants’ oxygen production business upon an understanding, reached with the second defendant, that forty percent of the shares in the first defendant company would be allocated to the plaintiffs. The second defendant admitted in his pleadings that he was the Managing-Director, Governor and Financial Controller of the first defendant. The defendants had, however, failed to honour the agreement concluded with the plaintiffs. The learned trial judge concluded that: “It is my opinion therefore that there was a valid agreement between the plaintiffs and the def...