‘BAICO’ To Pay N34m For Unalloted Shares

By WILSON ASEKOMHE

A Federal High Court sitting in Lagos has ordered that money belonging to BAICO Insurance Plc with the National Insurance Commission and the Central Bank of Nigeria be paid to satisfy the judgment sum of N34,650,000 plus interest at the rate of 10 per cent per year from the date of judgment until final liquidation of the judgment sum.
The order was sequel to an affidavit sworn to by a legal practitioner, Mr. Eniola Agbelusi, filed and argued before the court by Barrister Ade Oyebanji.
Mr. Agbelusi averred that on July 26, 2008, the Investment and Securities Tribunal holden at Abuja, entered judgment in favour of judgment creditor, Mrs. Modupe Oyepero Oyefesobi, in the sum of N34,650,000 plus interest at the rate of 10 per cent per annum from the date of judgment until final liquidation, but the judgment sum with interest were not paid despite the directive of the National Insurance Commission, to BAICO Insurance, to settle Mrs. Oyefesobi within three weeks.
The deponent averred further that BAICO Insurance has money being owed by both National Insurance Commission and Central Bank of Nigeria which is sufficient to liquidate the judgment debt and therefore urged the court to make an order attaching money belonging to the  insurance company.
Mrs. Oyefesobi, who is the plaintiff in this case, replaced her husband, who was the original plaintiff but died in the course of the case.
Dr. S.O. Oyefesobi, as a shareholder of BAICO Insurance, acquired 3,250,000 units of shares under the rights issue of the company in March/April 1994, but the company failed to issue a certificate in respect of the 3,250,000, which is now the equivalent of 24,062,500 shares and consequent upon the dispute, he filed a suit at the Federal High Court against BAICO and the court then granted an order suspending further dealing on the disputed shares. Thereafter, the company decided to settle out of court pursuant to which a memorandum of understanding was executed between the two parties.
Based on this, the insurance company was paid a total sum of  N12,512,500 by Dr. Oyefesobi for 24,062,500 shares and was appointed a director and was attending meetings.
On September 18, 2001, the Board of Directors of the company was dissolved by National Insurance Commission and on  February 6, 2003, the company wrote a letter to Dr. Oyefesobi, limiting his shares to 11,625,686 units.
The letter failed to recognise 24,062,500 shares offered to him based on the memorandum of understanding, while the money he paid for the shares was still with the company.
He complained about this anomaly but nothing was done and then instituted another legal action at the Federal High Court to stop the company from holding its Annual General Meeting slated for March 4, 2003 as well as filed another matter before Investments and Securities Tribunal holden at Abuja.
In its judgment, the tribunal ordered that Mrs. Oyefesobi, by virtue of the power of attorney of her husband, is entitled to 24,062,500 of the shares as rights due to her under the rights issue.
It also ordered that the letter dated February 6, 2003 by BAICO, limiting his shareholding in the company to 11,615,686 unit shares, is ineffectual and that the respondent pays the plaintiff the sum of N34,650,000 representing the value of the 24,062,500 units shares due to him in the company. The sum shall attract 10 per cent from the day of the judgment which was July 26, 2006.