NATHAN AKAINYAH, OSEI ASAFO-ADJEI & 4 OTHERS vs. ECOBANK TRANSNATIONAL INCORPORATED & ECOBANK GHANA LIMITED [2019]DLHC9221

NATHAN AKAINYAH, OSEI ASAFO-ADJEI & 4 OTHERS vs. ECOBANK TRANSNATIONAL INCORPOR... [2019]DLHC9221

Date	2019-11-04
Suit No.	SUIT NO. BFS/214/2015
Citation No.	[2019]DLHC9221

HER LADYSHIP JUSTICE JENNIFER ABENA DADZIE

AKOTO AMPAW ESQ. OF AKUFFO-ADDO PREMPEH & CO KWAKWADUAM CHAMBERS 67 KOJO THOMPSON ROAD ADABRAKA ACCRA COUNSEL FOR PLAINTIFFS

DINAH ASONABA DAPAAH ESQ. OF SAM OKUDZETO & ASSOCIATES SENA CHAMBERS 1ST FLOOR TOTAL HOUSE LIBERIA ROAD ACCRA COUNSEL FOR 1ST DEFENDANTS

ACE ANAN ANKOMAH ESQ. OF BENTSI-ENCHILL LETSA & ANKOMAH ADABRAKA ACCRA COUNSEL FOR 2ND DEFENDANT

[2019]DLHC9221
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													<main id="main" class="content" style="min-height: 60rem" ><a name="_Hlk23164429">NATHAN AKAINYAH, OSEI ASAFO-ADJEI
&amp; 4 OTHERS<o:p></o:p></a>(PLAINTIFFS)<o:p></o:p>vs.<o:p></o:p>ECOBANK TRANSNATIONAL INCORPORATED
&amp; ECOBANK GHANA LIMITED<o:p></o:p>(DEFENDANT)<o:p></o:p>[HIGH
COURT, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

<p class="MsoListParagraphCxSpLast" align="center" style="margin:0cm;margin-bottom:
.0001pt;mso-add-space:auto;text-align:center;border:none;mso-border-bottom-alt:
solid windowtext 1.5pt;padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">SUIT
NO. BFS/214/2015&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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: 4TH NOVEMBER, 2019<o:p></o:p>

</div>COUNSEL:<o:p></o:p>AKOTO AMPAW, ESQ., OF AKUFFO-ADDO,
PREMPEH &amp; CO, KWAKWADUAM CHAMBERS, 67 KOJO THOMPSON ROAD, ADABRAKA, ACCRA,
COUNSEL FOR PLAINTIFFS<o:p></o:p>DINAH ASONABA DAPAAH ESQ., OF SAM
OKUDZETO &amp; ASSOCIATES, SENA CHAMBERS, 1ST FLOOR, TOTAL HOUSE,
LIBERIA ROAD, ACCRA, COUNSEL FOR 1ST DEFENDANTS<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

<p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align:
justify;line-height:150%;tab-stops:298.8pt;border:none;mso-border-bottom-alt:
solid windowtext 1.5pt;padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">ACE
ANAN ANKOMAH, ESQ., OF BENTSI-ENCHILL, LETSA &amp; ANKOMAH, ADABRAKA, ACCRA,
COUNSEL FOR 2ND DEFENDANT <o:p></o:p>

<o:p>&nbsp;</o:p>

</div>JUDGMENT<o:p></o:p>______________________________________________________________________________<o:p></o:p>The
Plaintiffs were executive members and a head of department of the Trust Bank
(TTB) which was later merged with the 1st Defendant and were
allegedly declared redundant by the said bank prior to the said merger with 2nd
Defendant.<o:p></o:p>The
1st Defendant is a banking institution incorporated under the laws
of the Republic of Togo whiles 2nd Defendant is a banking
institution incorporated under the laws of Ghana and engages in the business of
banking and is a subsidiary of the 1st Defendant. This case was
initially commenced against the Trust Bank as the 1st Defendant and
the Ecobank Transnational Incorporated and Ecobank Ghana Ltd as the 2nd
and 3rd Defendants respectively. However, due to the subsequent
merger of the Trust Bank and Ecobank Ghana Ltd, the writ was amended to reflect
that change.<o:p></o:p>I
have reviewed the record of proceedings and the evidence adduced in this case
extensively.&nbsp; I will recount the facts of
the case as can be gleaned from the records.&nbsp;
1st, 2nd and 3rd Plaintiffs, together
with the late Asare Boakye-Yiadom were Executive Committee members and heads of
department of The Trust Bank (TTB).&nbsp;
Plaintiffs aver that there was a share swap deal being negotiated
between SSNIT, the majority shareholder in TTB and Ecobank Transnational
Incorporated (ETI) which was to lead to a merger of Ecobank Ghana Ltd, the 2nd
Defendant and TTB.&nbsp; In recognition of the
possible change in work culture and policy and the possible layoffs that may be
occasioned after the said merger, the management of TTB presented a redundancy
policy to the Board of Directors. Following this, the Board of directors at its
meeting on July 2, 2011, decided that the proposal should be titled Redundancy
policy and that same should be referred to the chairman of the Board’s
Remuneration Committee for further consideration and thereafter to the chairman
of the Board for approval. <o:p></o:p>Plaintiffs
further aver that on August 8, 2011, following the approval of the redundancy
policy, the Board again considered a proposal from management for declaring the
executive members and six selected departmental heads (totalling 11) redundant
for the purposes of the merger with the 1st Defendant. The Board
resolved to adopt the recommendation of management and declared the Plaintiffs
and others redundant for the purposes of the merger on the basis that they were
nearing retiring age or performing specialised functions that would make their
redeployment difficult and ultimately cause friction in the process of
placement. The Board adopted a resolution authorising the payment of a total of
Nine Million Eight Hundred Thousand Ghana Cedis (GHȻ9,800,000.00)
as redundancy package. The redundancy was calculated on the basis of the
redundancy policy which had been adopted and incorporated into the terms of
service of employees. The terms of the policy dictated that a person declared
redundant was entitled to specific benefits calculated on the basis of their
basic pay, number of years of service and age. <o:p></o:p>It
is the contention of Plaintiffs that following the share swap, Ecobank Ghana
Ltd (2nd Defendant) was asked to reconstitute the Board and hence at
a meeting on December 20, 2011, the Board was dissolved and a new one
constituted. It was at this purported meeting that the newly constituted Board
reversed the resolution made on August 8, 2011 concerning the redundancy policy
and package and also directed that all monies paid out in respect of the
redundancy package be refunded.<o:p></o:p>