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  • Melwani v. Feed Nation Industry (Nig.) Ltd
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  • 2002-07-29
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Melwani v. Feed Nation Industry (Nig.) Ltd

J. K. MELWANI

V

FEED NATION INDUSTRY (NIG.) LTD.

COURT OF APPEAL

( IBADAN DIVISION )

UCHE OMO, JCA ( Presided and Read the Lead Ruling )

JOHN HEZEKIAH OMOLOLU-THOMAS, JCA

IBRAHIM KOLAPO SULU-GAMBARI, JCA

CA/I/M.80/86

TUESDAY, 7TH OCTOBER, 1986

COMPANY LAW AND PRACTICE - Shareholder - Where seeks to claim the whole amount contributed by him to the company - Legal effect of - Whether thereby indirectly seeks his own removal from the company

PRACTICE AND PROCEDURE - Stay of execution - Grant of - Conditions therefor - Need to show special circumstances before granting same

PRACTICE AND PROCEDURE - Stay of execution - Grant of - Purpose thereof

Issues:

1.            Whether a stay of execution can be granted where the applicant had failed to show special circumstances warranting the grant of same.

2.            What is the legal effect of a shareholder in a company seeking to withdraw the whole amount contributed as his financial contribution (by way of shares) to the company?

Facts:

The action in this suit had been commenced following a protracted disagreement between the shareholders and directors of the respondent company. The applicant herein was the first Managing Director of the respondent company. The respondent brought an action against the applicant in the Oyo State High Court claiming from him the sum of N206.684.14 representing sums allegedly withdrawn by the applicant on various occasions from the respondent’s bank account either by himself or through his agents. The applicant counter-claimed for the sum of N136,000.00 being money he contributed to the respondent company. The trial court held in its judgment for the respondent that the correct amount contributed (by way of shareholding) by the applicant to the respondent company was N62,000.00.

Dissatisfied, the applicant filed an appeal to the Court of Appeal. He subsequently applied to the High Court for a stay of execution which application was refused. Pursuant to the refusal, the respondent successfully levied execution against the personal effects of the applicant. He later filed this application in the Court of Appeal alleging, among others, that he had no means to pay the judgment debt and that the judgment given in favour of the respondent was tantamount to removing him from the company.