The Digest:
The Court of Appeal has disqualified senior lawyers Wole Olanipekun and Muiz Banire from representing Nestoil and Neconde in a $2 billion debt case filed by FBNQuest Merchant Bank Limited and First Trustees. The court ruled that the authority of the Ernest Azudialu-Obiejesi-led board to appoint lawyers had been suspended under the receivership. All processes filed by the legal teams were struck out, with the court affirming that only the plaintiffs who appointed the receiver could hire counsel for the companies. The Supreme Court had previously directed parties to resolve representation issues at the appellate level.
Key Points:
- The ruling reinforces the legal authority of court-appointed receivers and limits the power of previous company leadership during receivership.
- It may delay proceedings in the high-stakes debt recovery case, affecting creditors and the financial stability of the involved firms.
- The disqualification of two prominent senior advocates underscores the procedural rigor in high-value commercial litigation.
- It highlights the tension between debtor companies and creditors over legal representation in asset recovery disputes.
- The decision clarifies corporate governance boundaries under receivership, potentially influencing similar cases in Nigeria’s corporate law practice.
Sources: The Cable, Business Day
