ADRYX MINING AND METALS LTD AND OTHERS vs ASHANTI GOLDFIELDS CO LTD [2000]DLHC102

Date	2000-02-09
Suit No.
Citation No.	[2000]DLHC102

RICHARD APALOO J

T LITHUR (WITH HIM MIRIAM BREW) FOR THE APPLICANTS.

S KWAME TETTEH (WITH HIM BEYUO

AMENUVOR AND FORSON) FOR THE RESPONDENT COMPANY.

[2000]DLHC102
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">ADRYX MINING AND METALS LTD AND OTHERS<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">vs<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">ASHANTI GOLDFIELDS CO LTD<o:p></o:p>[1999-2000]
2 GLR 758<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.0pt;
mso-border-bottom-alt:solid black .5pt;padding:31.0pt 31.0pt 1.0pt 31.0pt;
mso-border-shadow:yes">

<p class="MsoNormal" align="right" style="margin-bottom:5.0pt;text-align:right;
mso-pagination:none;border:none;mso-border-bottom-alt:solid black .5pt;
padding:0in;mso-padding-alt:31.0pt 31.0pt 1.0pt 31.0pt;mso-border-shadow:yes">Date: 9 FEBRUARY 2000<o:p></o:p>

</div>COUNSEL:T LITHUR (WITH HIM MIRIAM
BREW) FOR THE APPLICANTS.S KWAME TETTEH (WITH HIM
BEYUO, AMENUVOR AND FORSON) FOR THE RESPONDENT COMPANY.___________________________________________________________________________________________________________________________CORAM:RICHARD APALOO J___________________________________________________________________________________________________________________________JUDGEMENT<o:p></o:p>Richard Apaloo J. <o:p></o:p>The
applicants are in court to invoke the jurisdiction of the High court you under
the Companies Code, 1963 (Act 179) 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 for convening an extraordinary general meeting of the respondent
company for the purpose of passing ordinary resolutions for the election of a
new board of directors and the removal of the existing one. The extraordinary
general meeting (hereinafter referred to as an EGM) if ordered, will consider a
resolution under section 202(1)(a) to permit the sale of all, or any of the
companys assests.<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 injunction restraining the existing directors of the respondent company from
entering into any agreement, contract or understanding which may impair or
substantially reduce the ability of any board of directors elected at the
general meeting to deal with the companys affairs as they might otherwise have
chosen. <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">(3)
Consequential orders arising directly out of the reliefs sought.”<o:p></o:p>The
five applicants whose addresses and number of shares owned by them were annexed
to the application as exhibit JCG1, claim they are the holders of ¢4,716,294
shares of the respondent company and that their total shareholding represent
4.2 per cent of the 112,893,000 issued share capital of the respondents. From
exhibit JCG1, it is clear that the first and second applicants reside in
Luxembourg; the third and fourth applicants who bear the same or similar names
reside in New York, USA and the fifth applicant lives in Switzerland.<o:p></o:p>The
respondent company (hereinafter referred to as “Ashanti”, is a Ghanaian company
incorporated under the laws of Ghana in 1974 and became a public company
limited by shares in March 1994. The stated capital of Ashanti is 200 million
ordinary shares of no par value and one special rights redeemable preference
share of no par value. As at 31 December 1999, 112,893,000 ordinary shares and
the one special rights redeemable preference share had been issued. Ashanti
carries on business as a gold exploration, development and mining company.
There is evidence before me that in addition to being listed on the Ghana Stock
Exchange, Ashanti went international in 1994 and is currently listed on the
London, New York, the Australian, the Zimbabwe and the Toronto Stock Exchanges.<o:p></o:p>The
complaint of the applicants is that when Ashanti went public internationally in
May 1994, its shares were offered to the public at US$20 per ordinary share but
at the close of trading on the New York Stock Exchange on 5 January 2000, the
value of Ashanti’s shares had fallen drastically and were quoted at</main>