STEVE BRATHWAITE vs. ATWIMA MPONUA RURAL BANK AND SAMUEL DADZIE & 4 ORS [2018]DLHC3744

Date	2018-04-24
Suit No.	SUIT NO.BFS/36/17
Citation No.	[2018]DLHC3744

ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT

JUDY EDUSEI FOR ASANTE KROBEA FOR APPLICANTS

ISAAC OWUSU ANSAH FOR BENJAMIN OSEI BOATENG FOR PLAINTIFF

KOFI BOYE ATENG FOR DEFENDANT.

[2018]DLHC3744
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													<main id="main" class="content" style="min-height: 60rem" >STEVE BRATHWAITE<o:p></o:p>vs.<o:p></o:p>ATWIMA MPONUA RURAL BANK
AND SAMUEL DADZIE &amp; 4 ORS<o:p></o:p>&nbsp;[HIGH COURT (COMMERCIAL
DIVISION), KUMASI]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

SUIT NO.BFS/36/17&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; &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: 24TH APRIL, 2018<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p>JUDY EDUSEI FOR ASANTE
KROBEA FOR APPLICANTS <o:p></o:p>ISAAC OWUSU ANSAH FOR
BENJAMIN OSEI BOATENG FOR PLAINTIFF<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

KOFI
BOYE ATENG FOR DEFENDANT.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>

ANGELINA
MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT<o:p></o:p>

RULING<o:p></o:p>

</div><a name="OLE_LINK2"></a><a name="OLE_LINK1">On
09/04/2018, the Applicants herein who described themselves as majority
shareholders of the Defendant Bank field the instant application to be joined
to the suit as Defendants. Under order 4 rule 5 (a) and (b) of the High Court
(Civil Procedure) Rules 2004, C.I. 47.<o:p></o:p></a>The
gravamen of this application, as gathered from paragraphs 7 and 8 of the
supporting affidavit is that the Applicants who are majority shareholders will
be significantly affected by the outcome of this suit.<o:p></o:p>In
arguing the motion, counsel for the Applicants conceded that the Applicants’
shares put together does not make them majority shareholders.<o:p></o:p>Counsel
for the Plaintiff/Respondent vehemently opposed the application. He argued
inter alia, that the application itself is premised on the wrong footing, since
the Applicant admit, through their counsel there, they are not majority
shareholders.<o:p></o:p>Counsel
also submitted that the Defendant Company is a legal entity which can sue and
be sued, and if a work is done to a company, he Company can sue in its own
capacity. Relying on Bank of West Africa, Appenteng, (1972) 1 GLR 153, counsel
submitted that shareholders lack the capacity to sue or defend an action
against a company. He urged the court to dismiss the instant application as
being an abuse of the processes of the court and an invitation to open the
floodgates to the remaining 95% shareholders to be joined as Defendants, which
will in the long run unnecessarily delay proceedings.<o:p></o:p>Concluding,
counsel argued that, the Applicants as shareholders are not necessary parties
to this suit.<o:p></o:p>In
the Bank of West Africa v. Appenteng case, referred to supra, the Court of
Appeal held (holding 1) that:<o:p></o:p>“&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As a general rule, a shareholder
cannot sue for a wrong done to a company or to recover money as damages to it,
unless the action is taken by the Company itself…”<o:p></o:p>There
are however exceptions to this general rule, for example, where the company
purports to undertake an illegal or ultra varei activity, because section 217
(1) of the companies Act, 1963, Act 179, and where the individual members seek
to protect their personal rights.<o:p></o:p>It
is to be noted that the Applicants herein are not seeking to be joined as
Plaintiffs, but as Defendants. The reliefs being sought by the Plaintiff, as a
majority shareholder, are directed at the Defendant Company or bank itself.<o:p></o:p>These
are the reliefs:<o:p></o:p>(a)&nbsp;&nbsp; A
declaration of the court that it was wrongful for the Defendant not to include
the business of un ordinary resolution proposed by the Plaintiff under section
185 of companies Act, 1963, Act 179, at its 32nd Annual General Meeting
held on 24th, February, 2017.<o:p></o:p><o:p>&nbsp;</o:p>(b)A
declaration of the court that it was wrongful for the Defendant to issue shares
above the authorized share issue of ten million sh</main>