The Federal High Court in Abuja has been urged to void some portions of the now controversial Companies and Allied Matters (CAMA) 2020 for being in conflict with constitutional provisions.
The request is contained in a suit marked: FHC/ABJ/CS/1035/2020 filed by a lawyer, Layi Ademokoya of the firm of Babs Akinwumi & Co.
Named as defendants are the National Assembly, the Corporate Affairs Commission (CAC) and the Minister of Trade and Investment.
Ademokoya faulted the provisions contained in Section 839 of CAMA 2020, particularly sub-sections 1, 2, 3 and 11, which he argued, usurps the discretionary powers of the court and breaches citizens right to fair hearings.
Sub-section 2 of Section 839 of the Act provides: “The trustees shall be suspended on order of the court upon the petition of the commission or members consisting one-fifth of the association and the petition shall present all reasonable evidence or such evidence as requested by the court in respect of the petition.”
Ademokoya argued that the provision in Sub-section 2 “mandated the court to give an order without recourse to the discretionary powers of the court or right of fair hearing for the other party that can be affected by the decisions of the commission.
“The provisions of Section 839 sub-section 1-3 of the Companies and Allied Matters Act, 2019 do not give a fair hearing to a responding party to the commission’s petition as the defendant‘s rights to defend, cross-petition or counter-claim were not captured in the Act.
“The provisions of Section 839 sub-section 1-3 is in contravention of the Constitution of the Federal Republic of Nigeria 1999 (as amended) and the Federal High Court Act LFN 2004. It is only the Judiciary through the courts that can interpret Laws and not the Minister of Trade and investment or Corporate Affairs Commission.
“The Minister of Trade and Investment does not have the powers to give approval to the CAC or an Act inconsistent with the constitutional provisions, thereby making Sections 839 subsection 11 of the CAMA contrary to the supreme law of the land.”
Ademokoya is praying the court to among others, declared unconstitutional, null and void the portions of the CAMA he complained about.
He also seeks a declaration that the provisions of Section 839 sub-sections 1, 2 and 3 of the Act “should be amended or expunged with immediate effect.”
