P S INVESTMENT LTD vs. CENTRAL REGIONAL DEVELOPMENT CORPORATION AND OTHERS [2012]DLSC11112

Date	2012-04-18
Suit No.	(Civil Appeal No14/40/2011)
Citation No.	[2012]DLSC11112

SOPHIA ADINYIRA JSC

R C OWUSU JSC

DOTSE JSC

ANIN YEBOAH JSC

BAFFOE-BONNIE JSC

FELIX NTRAKWA (WITH HIM KWADWO GYASI NTRAKWA) FOR THE APPELLANT

NII ODOI ODOTEI (WITH HIM MARTIN KPEBU) FOR THE SECOND RESPONDENT

CECIL ADADEVOR

SENIOR STATE ATTORNEY FOR THE THIRD RESPONDENT

YAA JAKOBO (MRS) FOR THE FOURTH RESPONDENT

[2012]DLSC11112
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													<main id="main" class="content" style="min-height: 60rem" >P S INVESTMENT LTD<o:p></o:p>vs.<o:p></o:p>CENTRAL REGIONAL DEVELOPMENT CORPORATION AND OTHERS<o:p></o:p>[SUPREME COURT,&nbsp; ACCRA]<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">(Civil
Appeal No14/40/2011)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;DATE:
18April 2012<o:p></o:p>

</div>COUNSEL:<o:p></o:p>FELIX NTRAKWA (WITH HIM KWADWO GYASI NTRAKWA) FOR THE
APPELLANT. NII ODOI ODOTEI (WITH HIM MARTIN KPEBU) FOR THE SECOND RESPONDENT.
CECIL ADADEVOR, SENIOR STATE ATTORNEY, FOR THE THIRD RESPONDENT.<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

SOPHIA&nbsp; ADINYIRA JSC,&nbsp; R C&nbsp;
OWUSU JSC,
DOTSE JSC, ANIN YEBOAH JSC, BAFFOE-BONNIE JSC<o:p></o:p>

</div>&nbsp;DOTSE JSC delivered the
judgment of the court. In view of the peculiar facts and circumstances of this
appeal, we deem it expedient to state in some detail, the facts of the case
which are relevant and applicable to the issues germane to the resolution of
the appeal herein.<o:p></o:p>The facts of the case<o:p></o:p>The
plaintiff-appellant, PS Investment Ltd (hereafter referred to as the
plaintiff), is a shareholder in Twifo Oil Palm Plantation Ltd (TOPP), a company
incorporated under the Laws of Ghana and engaged in the cultivation of oil
palm. TOPP, the fourteenth defendant, together with the other thirteen
defendants are hereafter referred to simply as the defendants. In order to
understand the dynamics of the shareholding structure of the fourteenth
defendant company, it is proper to set out in detail the said shareholding
structure as provided in the record of the appeal:<o:p></o:p>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Central Regional Development&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>Corporation
(CEREDEC)&nbsp;&nbsp;&nbsp; 80.46%;<o:p></o:p>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State Insurance Company Ltd (SIC)-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.21%<o:p></o:p>(iii)&nbsp; Paterson Zocbonis PLC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.47%<o:p></o:p>(iv)
National Investment Bank&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.33%<o:p></o:p>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PS Investments Ltd&nbsp; 15.53%<o:p></o:p>(vi)
Mobil Oil Ghana Ltd&nbsp;&nbsp;&nbsp; 0.33%<o:p></o:p>The
fifth, seventh, eighth, ninth, tenth, eleventh and twelfth defendants
respondents, were at all material times, directors of TOPP. The thirteenth
defendant, Frank Baku, reputedly held himself out as a director. It is to be
noted that the shareholders of TOPP were required by the regulations of TOPP,
to appoint directors to represent their interest on the board.<o:p></o:p>At
various times, Unilever Ghana Ltd (hereinafter referred to as Unilever, the
second defendant herein), showed interest inthe acquisition of shares in TOPP.
Unilever discussed the possibility of acquiring the shares of Paterson Simons
&amp; Co (Africa) Ltd, the predecessor of the plaintiff company, but no deal
was concluded. Unilever also attempted to acquire the shares of SIC without
success. When Unilever, again failed to acquire the shares of Mobil Oil Ghana
Ltd (Mobil), through its subsidiary GBO Investments Ghana Ltd (GBO) because the
board considered Mobil's offer contrary to regulation 32 (a) of the Regulations
of TOPP, an action was brought by GBO in the High Court, Accra against TOPP and
Mobil.<o:p></o:p>Whilst
GBO's action against TOPP and Mobil was still pending, the Chairman of the
Board ofDirectors ofTOPP, instructed the Company Secretary of TOPP to write to
the shareholders of TOPP about the<o:p></o:p>"Government
of Ghana's shares" in TOPP. The board secretary wrote exhibit 7 dated 29
October 1997 to individual directors of TOPP, represen</main>