MONTERO AND ANOTHER vs. REDCO LTD. AND ANOTHER [1986]DLCA946

Date	1986-06-19
Suit No.
Citation No.	[1986]DLCA946

ABBAN JA

OSEI-HWERE JA

AMUA-SEKYI J.A

ANNANCY (WITH HIM MISS DANQUAH) FOR THE APPELLANTS.

OSEI-BONSU (WITH HIM ABABIO) FOR THE RESPONDENTS.

[1986]DLCA946
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													<main id="main" class="content" style="min-height: 60rem" ><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MONTERO AND ANOTHER <o:p></o:p>

{COURT OF APPEAL, ACCRA} <o:p></o:p>

[1984-86] 1 GLR 710<o:p></o:p>

DATE:
19 JUNE 1986<o:p></o:p>

</div><o:p>&nbsp;</o:p>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

ANNANCY
(WITH HIM MISS DANQUAH) FOR THE APPELLANTS. <o:p></o:p>

OSEI-BONSU
(WITH HIM ABABIO) FOR THE RESPONDENTS.<o:p></o:p>

</div>CORAM:
<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

ABBAN, OSEI-HWERE AND AMUA-SEKYI JJ.A<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF ABBAN J. A.<o:p></o:p>This is
an interlocutory appeal from the ruling of the High Court, Accra dated 2 July
1985. In that ruling the learned High Court judge refused to grant the
appellants (hereafter called the plaintiffs) an interim injunction restraining
the respondents (hereafter called the defendants) from suspending the first
plaintiff as the managing director pending the determination of the suit.<o:p></o:p>The
plaintiffs had sued for the following reliefs:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(1) an order to restrain the
defendants from taking decisions which are contrary to the regulations of Redco
Ltd., a limited liability company registered under the Companies Code, 1963
(Act 179); and<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(2) An order of the court to
declare the decision contained in the first defendant’s letters dated 8 and 22 May
1985 void and of no effect.”<o:p></o:p><o:p>&nbsp;</o:p>The two
plaintiffs in the court below were Mr Montero and a Spanish group of companies
with a long name. For the sake of brevity they will hereinafter be referred to
as the Spanish group. The defendant’s were also two, namely Redco Ltd and Mr
Duncan, chairman of the board of directors of Redco Ltd. Redco Ltd is
registered in Ghana as a limited liability company under the Companies Code,
1963 (Act 179) of Ghana. The shareholders of Redco Ltd are the Spanish group,
holding 40 per cent of the shares and Bank for Housing and Construction which
holds the remaining 60 per cent.<o:p></o:p>The first
plaintiff, Mr Montero, was the managing director of Redco Ltd. and at the same
time the executive chairman of the Spanish group. In May 1985 the board of
directors of Redco Ltd. “in the supreme interest of, Redco Ltd. instructed the
first plaintiff to hand over the management of Redco Ltd. to his deputy, one
Mr. D. B. Pabi, and the latter was to be -the acting managing director of Redco
Ltd. Until further notice. In other words, the first plaintiff was suspended as
the managing director of Redco Ltd.<o:p></o:p><o:p>&nbsp;</o:p>It may be
observed that the decision to suspend the first plaintiff as the managing
director of Redco Ltd. and to appoint Mr Pabi as the acting managing director
was taken by the board of directors of Redco Ltd. at a meeting and the same was
later communicated to the first plaintiff by letters referred to in the writ of
summons.<o:p></o:p>The first
plaintiff and the Spanish group, the second plaintiff herein, contended that
the board of directors which took the said decision did not form a quorum, and
therefore the decision was unlawful and the court should declare the same null
and void.<o:p></o:p><o:p>&nbsp;</o:p>After
filing the writ and the statement of claim, the plaintiffs filed their
application for the interim injunction. The affidavit in support of the
application ran into several paragraphs; but I would refer to only about four
of them which are most relevant to the decision in this case. They read as follows:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">