PREMIUM PLACE INVESTMENTS vs. OVAL MICROFINACE COMPANY LTD & ORS. [2019]DLHC10463

Date	2019-08-09
Suit No.	SUIT NO.: GJ/649/2019
Citation No.	[2019]DLHC10463

HER LADYSHIP JUSTICE ELLEN VIVIAN AMOAH

FLORA AGGREY-FYNN AMISSAH HOLDING BRIEF FOR YAW SARPONG

BOATENG FOR THE DEFENDANT /APPLICANTS – PRESENT

[2019]DLHC10463
																																						<div class="restriction-wrapper">
														<div class="container-lg">
															<div class="row">
																<div class="col-md-12 restricted-content">
																	<div class="restricted-content-img-wrapper">
																		<div class="lock-icon bounce-7">
																			<img class=""
																				src="https://www.dennislawgh.com/dl-assets/dl-images/lock-content.png"
																				alt="Subscription based content">
																		</div>
																	</div>
																	 
																		<a href="https://www.dennislawgh.com/login"
																		class="btn btn-primary btn-lg"
																		style="font-family: 'open sans'; text-transform: capitalize; border-radius: 8px"> 
																		Login to Read Full Case </a>
																	 
																	
																</div>
															</div>
														</div>
													</div>
													<main id="main" class="content" style="min-height: 60rem" >PREMIUM PLACE INVESTMENTS<o:p></o:p>(PLAINTIFF)<o:p></o:p>vs.<o:p></o:p>OVAL MICROFINACE COMPANY LTD &amp; ORS.<o:p></o:p>(DEFENDANTS)<o:p></o:p>[HIGH COURT, 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;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">SUIT
NO.: GJ/649/2019 &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:
9TH
AUGUST 2019<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <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;">

FLORA AGGREY-FYNN AMISSAH HOLDING BRIEF
FOR YAW SARPONG BOATENG FOR THE DEFENDANT /APPLICANTS – PRESENT<o:p></o:p>

</div>CORAM:<o:p></o:p>HER
LADYSHIP JUSTICE ELLEN VIVIAN AMOAH<o:p></o:p><div style="border-top-width: 1.5pt; border-top-color: windowtext; border-left: none; border-bottom-width: 1.5pt; border-bottom-color: windowtext; border-right: none; padding: 1pt 0cm;">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:115%;border:none;mso-border-top-alt:solid windowtext 1.5pt;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">RULING<o:p></o:p>

</div>&nbsp;This
is a ruling pursuant to a motion on notice to strike out the names of 2nd,3rd,4
and 5th defendants as parties in this suit filed on the 26th
day of July 2019<o:p></o:p>Counsel
for the Defendants/Applicants submits that the 2nd, 3rd,4th
and 5th defendants have merely been joined as defendants in this
suit because they are directors of the 1st defendant company.
Counsel for applicant refers to the statement of claim filed on the 21st
January 2019, paragraphs 2, 3, 4, 5, 6. In those paragraphs the 2nd,
3rd, 4th and 5th defendants are described as
defendants merely because they are directors of the 1st defendant
company. <o:p></o:p>Counsel
for applicant further argues that on the face of the statement of claim there
is no link between the directors personally and the Plaintiff that should make
them personally liable for the liabilities of the 1st defendant
company. Counsel for applicants further submits that companies have separate
legal personalities that makes them liable for their own actions. <o:p></o:p>Counsel
for Defendants/ Applicants concede that there are exceptions where the court
would lift the corporate veil however on the face of the statement of claim
none of these exceptions have been disclosed and proved to make these directors
personally liable and appropriate parties. Counsel for applicants again submits
that the 2nd to 5th defendants have been joined as
parties only because they have directed the 1st defendant company in
its normal course of business.<o:p></o:p>&nbsp;Counsel for Defendants/Applicants relies on Section 139 of the Companies Act 1963 (Act
179). and the decided case of MORKOR
V KUMA 1999-2000 1 GLR 69 which was the affirmation of the decision of the
decided common law case SALOMON v.
SALOMON &amp; CO. LTD [1895-9] All
E.R. 33-51<o:p></o:p>&nbsp;In
Counsels affidavit in opposition to the motion filed on the 17th
April 2019, Counsel for the Applicants avers that the plaintiff failed to lead
any evidence that links the directors personally to this transaction. The
transaction is a fixed deposit transaction which was carried on by the company
in its normal course of business. Counsel for Defendants/Applicants finally
submits that on the strength of law and decided cases, the 2nd 3rd
4th and 5th defendant should not be made parties to this
suit at all and therefore prays that the names of the 2nd,3rd
4th and 5th defendant be struck out as parties to the
suit accordingly.<o:p></o:p>Section
139 of the companies Act 1963 provides as follows <o:p></o:p>&nbsp;(1)&nbsp; An
act of the members in general meeting, the board of directors, or a managing
director while carrying on in the usual way the business of the company shall
be treated as the act of the company itself; and accordingly the company shall
be criminally and civilly liable for that act to the same extent as if it were
a natural person<o:p></o:p>According
to Bondzi-Simpson,
in his book the company law of Ghana, the incorporators of a corporate body are
distinct from the corporation they form. There is a metaphorical veil which
conceals the incorporators, members, directors or other personalities from the
corporation. Once duly incorporated, a corporation becomes distinct, separate
and artificial legal person. This is the rule of separate legal personality.<o:p></o:p>&nbsp;Per Lord Halsbury in SALOMON
v. SALOMON &amp; CO. LTD [18</main>