By Correspondent in Abuja
The Federal High Court in Abuja has nullified the Corporate Affairs Commission’s (CAC) controversial removal and replacement of the Incorporated Trustees of the Association of Local Governments of Nigeria (ALGON), declaring the action unlawful.
In his judgment, Justice Obiora Egwuatu held that the CAC acted outside its legal bounds by altering ALGON’s trusteeship without compliance with relevant provisions of the law. He affirmed that ALGON is a private organization and not subject to resolutions passed by the House of Representatives, citing the Supreme Court’s decision in Riyuk v. Incorporated Trustees of ALGON.
The CAC was said to have acted on a resolution by the House of Representatives Committee on States and Local Governments to effect the change in ALGON’s trustees—a move the court has now declared invalid.
Chukwudi Ezinwa, Gabriel Ugor, Shaba Shuaibu, Benjamin Kure-Solomon, and Sani Hassan, listed as the 1st to 6th plaintiffs in the suit marked FHC/ABJ/CS/1980/2024, filed the case against the CAC as the sole defendant. They were represented by senior advocate Joe Agi, SAN.
The plaintiffs asked the court to determine whether CAC’s action—based on an investigative report and resolution of the House Committee—violated their constitutional right to fair hearing, as provided in Section 36 of the 1999 Constitution (as amended) and Section 851(4) of the Companies and Allied Matters Act (CAMA) 2020. They also questioned whether the CAC had the authority to alter trusteeship without due process, contrary to Sections 834 and 835 of CAMA.
They urged the court to declare their removal illegal and void for lack of a valid resolution at a general meeting of ALGON and without their written consent, as required by law. They also sought an order compelling the CAC to cancel the altered status report issued on August 20, 2024, and revert to the earlier report of December 12, 2023.
In a supporting affidavit, Shaba Shuaibu asserted that the House Committee members are not members of ALGON and that no general meeting was convened or resolution passed to authorize the trusteeship change. He further stated that neither he nor any other affected trustee was granted a hearing before the CAC took action.
Justice Egwuatu ruled that the CAC’s action breached the law and violated the plaintiffs’ right to fair hearing. He ordered the immediate reinstatement of the removed trustees and barred the CAC from making further alterations to ALGON’s trusteeship without a valid resolution passed at a general meeting of the association.
Speaking after the judgment, counsel to the plaintiffs, Oladimeji Ekengba, said the ruling reaffirmed the legal position that the plaintiffs remain the legitimate trustees of ALGON.
Edited by Dada Ahmed.
