KWESI LIVINGSTONE vs. KEN KWAKU AND 2 ORS [2018]DLCA6188

Date	2018-11-01
Suit No.	CIVIL APPEAL NO.HI/163/2018
Citation No.	[2018]DLCA6188

P.K. GYAESAYOR J.A (PRESIDING)

E.K. AYEBI J.A

I. O. TANKO AMADU J.A

MR. KWABENA GYAMFI NIMAKO FOR APPELLANT

MR. EVANS DJIKUNU FOR RESPONDENTS

[2018]DLCA6188
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													<main id="main" class="content" style="min-height: 60rem" >KWESI LIVINGSTONE<o:p></o:p>vs.<o:p></o:p>KEN KWAKU AND 2 ORS<o:p></o:p>[COURT
OF APPEAL (CIVIL DIVISION), ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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CIVIL APPEAL NO.HI/163/2018&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:&nbsp; 1ST NOVEMBER, 2018<o:p></o:p>

MR.
EVANS DJIKUNU FOR RESPONDENTS<o:p></o:p>

<p class="MsoNormal" align="center" style="text-align:center;line-height:115%;
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solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>TANKO AMADU J.A<o:p></o:p>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This appeal lies from the ruling of the
High Court (Commercial Division) Accra dated the 10th day of October,
2016.&nbsp; In the said ruling, the Trial
Court determined and dismissed a motion which challenged the capacity of the
Applicant/Respondent to commence the action.<o:p></o:p>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BACKGROUND:<o:p></o:p>By
an originating notice of motion pursuant to Sections 217 and 218 of the
Companies Act 1963 (Act 179), the Applicant/Respondent (hereinafter referred to
as the Respondent) sought the following reliefs against the
Respondents/Appellants (hereinafter referred to as the Appellants).<o:p></o:p>“(i)A Declaration that the&nbsp; call made on the Applicant’s&nbsp; shares in 3rd Respondent valued at Gh₡727,027.00
and dated September 4th,&nbsp; 2015 is
irregular and same is invalid.<o:p></o:p>(ii)A Declaration that the unilateral
exercise of the shareholders right to appoint directors of 3rd Respondent is
unlawful and that all such appointments are invalid.<o:p></o:p>(iii)An order of perpetual injunction
restraining Respondents from making any board appointments without
shareholders’ approval.<o:p></o:p>(iv)An order that an independent audit
be undertaken of the affairs of 3rd Respondent.<o:p></o:p>(v)An order that 3rd Respondent be
valued by a valuer appointed by this Honourable Court for purposes of
determining for Applicant’s stake.<o:p></o:p>(vi)A Declaration that the conduct of
the 2nd Respondent of the affairs of the 3rd Respondent is oppressive to
Applicant.<o:p></o:p>(vii)A Declaration that the transfer
of Applicant’s shares to 2nd Respondent is unlawful and same is void.<o:p></o:p>(viii)A Declaration that 2nd
Respondent is unqualified to act or hold himself out as Executive Director of
Mc OTTLEY CAPITAL LTD.&nbsp; a subsidiary of
3rd Respondent.<o:p></o:p>(ix)In the alternative, a declaration
that 3rd Respondent wind up as&nbsp; 2nd
Respondent has demonstrated recklessness in the management of investor funds in
the Mc OTTLEY CAPITAL LTD. leading to the detriment of investors and the
Applicant.<o:p></o:p>&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
contesting the Respondent’s action the 1st and 2nd Appellants elected to
challenge same by an application to dismiss the action on the grounds that the
Respondent not being a member nor debenture holder of the 3rd Appellant, he
lacked capacity to invoke the Trial Court’s jurisdiction in commencing the
action. The crucial allegations contained in the affidavit in support of the
Appellants motion in the Trial Court are contained in paragraphs 7-17&nbsp; of the affidavit in support thereof (page 137
of the record) where it was alleged against the Respondent that:-<o:p></o:p>7)&nbsp;&nbsp;&nbsp;&nbsp; That I am further advised and verily
believe same to be true that an Applicant who brings an action under Section
218 of Act 179 must demonstrate that he is either a member or a debenture
holder of the company at the time of instituting the action.<o:p></o:p>8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; That the gravamen of the Applicant/Respondent’s
action is that he has suffered certain actions and conducts of the Respondents
which are oppressive to him as a purported member of the company and which is
also an improper exercise of the powers of the 1st and 2nd Respondents.<o:p></o:p>9)&nbsp;&nbsp;&nbsp; That the Applicant and I were allotted
shares in the 3rd Respondent company upon its incorporation.<o:p></o:p>10)&nbsp;&nbsp;&nbsp; That the said shares were allotted pursuant
to an understanding between the Applicant/Respondent and I that we were to make
equal contribution to the equity of the company.<o:p></o:p>11)&nbsp;&nbsp;&nbsp;&nbsp; That I paid cash and advanced c</main>