Alleged Illegal Sale Of N25Bn Shares: Otedola, Others Drag Zenith Bank To Court
Billionaire businessmen, Mr Femi Otedola and his company, Zenon Petroleum and Gas Limited and three other companies have dragged Zenith Bank to court over an alleged illegal sale of shares worth over N25 billion.
The plaintiffs in the suit filed on March 6, 2024, included Seaforce Shipping Co Limited, Luzon Oil and Gas Limited, and Garment Care that jointly accused Zenith Bank Plc of unlawfully deducting a sum of 205,346,373 from their accounts.
The defendants in the case pending before a Federal High sitting in Lagos and presided over by Justice Deinde Isaac Dipeolu, include Zenith Bank Plc, Quantum Zenith Securities and Investment Limited, Veritas Registrars Limited, and Central Securities Clearing System Plc.
The plaintiffs are seeking the court’s determination on whether Zenith Bank Plc and others are entitled to dispose of their shares, as well as whether they (defendants) can withhold, trade, transfer, or sell the shares belonging to the plaintiffs without their prior consent and approval.
They are also praying the court to address whether Zenith Bank Plc is entitled to benefit from its failure to disclose and deliver all assets of Zenon Petroleum and Gas Limited used as security under the loan facility agreement to AMCON.
Specifically, Otedola and the other plaintiffs are seeking several declarations and orders, including a declaration that Zenon Petroleum and Gas Limited remains discharged from any further obligation to Zenith Bank and a declaration that the offer letter did not confer any right on the bank to withhold, transfer, or sell the plaintiffs’ shareholdings.
The plaintiffs accordingly are seeking an order directing Zenith Bank to refund the wrongfully debited sum and to release and return the shares illegally taken from the company just as they are seeking damages and the cost of instituting the action.
The suit is supported by a 40-paragraph affidavit, deposed to by Philip Akinola, the Managing Director of Zenon Petroleum and Gas Limited, detailing how the bank allegedly illegally debited his company’s account and sold its shares.
