August 12, 2022



Unlawful takeover of BEDC: Attorneys start contempt proceedings towards defaulters

Authorized advisers to Vigeo Energy Restricted, majority shareholders of Benin Electrical energy Distribution Firm Plc (BEDC), have commenced contempt proceedings towards defaulters forillegal takeover of the corporate.

The legislation agency of Kunle Adegoke (SAN), legal professionals to VigeoPower Ltd, mentioned the contempt proceedings has grow to be crucial as a result of the eye of its consumer had been drawn to a publication issued by the Bureau of Public Enterprises ((BPE) on Wednesday, the thirteenth day of July, 2022, by which it laboured unsuccessfully to justify its makes an attempt at illegally taking on the BEDC Electrical energy Plc regardless of the orders of injunction issued by the Federal Excessive Courtroom, Abuja on the eighth day of July, 2022 in Go well with No. FHC/ABJ/CS/1113/2022 between Vigeo Energy Restricted v. Constancy Financial institution Plc & 7 Ors.

“It’s on file that the entire shareholding of the Bureau of Public Enterprises and the Ministry of Finance in BEDC is simply 40 p.c making the 2 of them minority shareholders which pales into insignificance within the face of the 60 percentshareholding held by Vigeo Energy Restricted, our consumer,” the legal professionals defined.

The legislation agency remarked that, “It’s unhappy that in a worst type of brigandage unknown to Corporations and Allied Issues Act (CAMA) and the Shareholders’ Settlement dated the twenty first day of August, 2013 which is subsisting among the many events, the BPE, utilizing Constancy Financial institution Plc as a entrance, has determined to take over an organization that’s not indebted to both BPE or Constancy Financial institution utilizing the bare power of state energy.”

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In keeping with the authorized advisers, “Opposite to the impression sought to be created by BPE within the publication referred to above, Vigeo Energy Restricted’s 60 p.c shareholding in BEDC was by no means collaterised in any mortgage transaction with Constancy Financial institution Plc or another monetary establishment.”

They contended that, “Additionally it is the case that it’s unknown to CAMA or the shareholder’s settlement subsisting among the many events that BPE can, by unilateral declaration, dissolve the board of BEDC and appoint its personal most well-liked individuals to take over the administration of BEDC. Had been that to be allowed, it means any minority shareholder can unilaterally take over the administration of an organization below the guise of imposing a non-existent mortgage transaction.”