DANIEL OFORI vs. ECOBANK GHANA LTD, SECURITIES AND EXCHANGE COMMISSION AND GHANA STOCK EXCHANGE

In May 2008, William OppongBio (2nd Defendant) engaged Databank Brokerage Ltd to buy 14,130,000 shares in Cal Bank Ltd. Plaintiff offered his shares to Databank to sell. Databank represented both buyer and seller. On 27 May 2008, Databank executed the trade on the Ghana Stock Exchange. Payment and share transfer processes followed the Exchange's rules, requiring settlement by 11am on the third day (T+3). On 30 May 2008, payment was made to the plaintiff via banker's drafts and fixed deposit instructions. However, unbeknownst to parties, Bank of Ghana (BOG) requested the trade be suspended for investigation, communicated to the Exchange at 1pm on 30 May, with Databank receiving the suspension letter at 5pm after payment was made. The Exchange suspended the trade, leading to a fall in share value. The 2nd Defendant later renounced interest in the shares. BOG cleared the trade on 13 June 2008. Plaintiff demanded payment, which was refused. The dispute centered on whether the trade had settled before suspension or had failed.

PWAMANG, JSC:- This case comes before us upon the invocation of our appellate jurisdiction by the plaintiff/appellant/appellant who was dissatisfied with the judgment of the Court of Appeal dated 6th June, 2013 which judgment went in favour of the defendants/respondents/respondents. The case arose out of trading of company shares on the Ghana Stock Exchange. Unless otherwise stated, we shall in this judgment refer to the parties by the descriptions they had in the trial court. FACTS The essential facts of this case are quite straightforward. Because the processes of the securities market with which we are concerned in this case are time bound, we shall set out the facts in chronological order. In May 2008, one William Oppong-Bio who was 2nd Defendant in the High Court engaged Databank Brokerage Ltd (Databank), a licensed dealer at the Ghana Stock Exchange (the Exchange), to act as his agent and buy for him 14, 130,000 shares in Cal Bank Ltd which are listed on the Exchange. Around t...