The Supreme Court on Friday declared the sacking of Bernard Longe as Managing Director/Chief Executive of the First Bank of Nigeria on June 13, 2002, as unlawful and void.
George Oguntade, who gave the lead judgment, said in his 28-page unanimous judgement, concurred to by four other justices that Mr. Longe's removal by the management of First Bank violated the provisions of section 266 (1) and (2) of the Companies and Allied Matters Act (CAMA).
"A declaration that in particular the decision of the defendant's board of directors held on 13th June 2002 to revoke the plaintiff's (Bernard Longe) appointment as Managing Director/Chief Executive is wrongful, unlawful, invalid, null and void, and incapable of having any legal consequence," Justice Oguntade ruled in the judgment.
Mr. Longe was consequently granted the five reliefs sought as grounds of his appeal, including that the board of directors erred in its decision to hold a meeting where Mr. Longe was sacked, without notifying him; and that any decisions taken at the meeting including any appointment to the office of Managing Director/CEO, was unlawful.
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***Judgement delivered by George Adesola Oguntade
***Judgement delivered by Francis Fedode Tabai
***Judgemet delivered by Ibrahim Tanko Muhammad
***Judgement delivered by Olufunlola Oyelola Adekeye
***Judgement delivered by Dahiru Musdapher
First Bank, the respondent in the case, didn't make an official statement as at the time of going to press, as a senior official promised that the bank will issue a formal statement later.
However, Celine Loader, the chief marketing officer for the bank, in a text message response to NEXT enquiries, said, "As you know, a prior judgement had been in favour of First Bank, but of course, the bank respects the Supreme Court and we are internally discussing the implications of this latest ruling."
Also, their lawyer, Richard Akinjide, a senior advocate and former Attorney General of Nigeria, refused to comment saying, "I have not seen the judgement. I was not in court today so I can't comment."
Seeking redress
Mr. Longe had gone to court to challenge his sack in 2002 for granting $131.7 million to Investors International (London) Limited (IILL) in the company's bid to purchase 51 per cent equity stake in Nigeria Telecommunications Limited (NITEL), which the bank board said did not to follow due process.
In addition, the amount was said to have exceeded the bank's single obligor limit at the time, even as the London telecoms firm lost out on the bid to acquire NITEL and so lost the non-refundable sum after the firm failed to secure the $1.185billion balance within the 90 days deadline set by the Bureau for Public Enterprises (BPE).
While the bank blamed Longe for the heavy loss it incurred in the deal, Longe in his statement of claim, said all the decisions taken in the failed deal, including the loan, was with the full consent and approval of all the directors of the bank.
He, therefore, prayed the court to declare his removal after the bank's extraordinary board meeting on June 13, 2002, null and void.
Victor Ogiemwonyi, managing director of Partnership Investment Limited, a stockbroking firm, described the judgement as wonderful news, saying, "They will have to pay him damages now. He cannot become managing director again."
Meanwhile, Femi Awoyemi, a financial analyst and chief executive officer of Proshare, said the landmark judgement will provide new insights into the relationship between employers and employees.
"It represents a major dimension in human relations law in Nigeria," Mr. Awoyemi said.
"That means those who were removed by the Central Bank of Nigeria also have a case," Mr. Awoyemi said, adding that both parties are likely to settle out of court.
He can't go back
At the time of going to press, it was still unclear what this judgment means in practical terms for both Mr. Longe and First Bank.
Bismarck Rewane, managing director, Financial Derivatives and a member, National Economic Steering Committee, said that the development will not negatively impact on the company's reputation.
"He cannot go back. They would pay him," Mr. Rewane. "No, no, no, this would not have implications or otherwise on the bank; he would just get paid for the damages," he said.
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