The Supreme Court of Nigeria has upheld the appeal filed by Nestoil and Neconde against a Court of Appeal decision that disqualified their legal representatives, Chief Wole Olanipekun (SAN) and Muiz Banire (SAN).
In its ruling, the apex court held that since the receivership itself is being challenged, the Board of Directors retains the authority to appoint legal counsel in relation to that challenge.
The court further ruled that allowing counsel appointed by the Receiver/Manager to represent the companies would create a legal anomaly and raise serious conflict of interest concerns.
According to the judgement, the involvement of FBNQuest Merchant Bank and First Trustees—as appointors of the Receiver/Manager—while the Receiver’s counsel also sought to represent the companies, was fundamentally flawed.
The court held that such an arrangement undermines the principles of fairness and independence in legal representation.
The judgement was delivered by Justice Idris.
Details later….
