Shareholders of defunct banks insist on compensation, appeal court ruling

They are praying the court to nullify a Federal High Court verdict which dismissed their originating summons.
They said that the defunct banks’ assets cannot be transferred to another entity without compensation to the shareholders who invested lump sums of money in the defunct banks.
Joined as respondents are the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON) and the Securities and Exchange Commission (SEC),
Others are the Nigerian Stock Exchange (NSE), Mainstreet Bank (former Afribank), Keystone Bank Ltd (former Bank PHB) and Enterprise Bank Ltd (former Spring Bank).
Represented by Mr. Boniface Okezie, Mr. Adeyemi Kehinde and Mr. Adebawola Bolanle, the appellants argued that Justice Archibong’s verdict misconceived the law when he validated the respondents’ action.
They argued that the respondents revoked the banks’ licenses, transferred their assets without cost to Mainstreet, Keystone and Enterprise banks, and also de-listed their shares from the NSE.
The appellants maintained that these acts were in breach of the law, as they were based on reasons inconsistent with the law.
They are therefore, seeking damages while praying the appellate court to uphold their appeal.
“The court is respectfully urged to allow the appeal and grant the reliefs sought on the originating summons.
“Damages should be assessed at the rate of the difference between the value of shares of Afribank, PHB and Spring Bank, on the stock exchange at the time of the intervention of the CBN governor in the banks, in 2009,” they said.