Court Throws Out Suit Seeking Sack of Lagos Motor Boat Club Trustees

*Says Babajide Coker lacks legal right to initiate proceedings
*Declares suit mere academic exercise

Justice A. L. Alagoa of the Lagos Division of the Federal High Court has struck out the suit filed by a member of the Lagos Motor Boat Club, seeking the sack of the trustees of the club over his alleged exclusion in the 2020 election of the club.

Justice Alagoa in a judgment delivered on February 21, 2022, struck out the suit on the grounds that plaintiff Babajide Coker has no locus standi to have brought the action according to section 839(2) & (3) of the Companies and Allied Matters Act.

The judge also held that the Plaintiff was wrong to have asked for the nullification of the 2020 election of the 1st Defendant Club as he was only interested in 1 of the 12 places being contested.

According to the court, it would be wrong and in breach of the fundamental rights of the 11 other elected officers who are not parties to this action and have not been joined to nullify their election.

Coker had last year dragged the Registered Trustees of the Lagos Motor Boat Club to court over his alleged wrongful expulsion and commuted suspension from the club.

In the suit filed on June 16, 2021, he claimed his wrongful expulsion which was later converted to 6 months suspension robbed him opportunity to vie for the post of Duty Officer in the club’s 2020 election.

The suit filed on his behalf by Kemi Pineheiro, SAN, has the Registered Trustees of the Lagos Motor Boat Club, Dr Dapo Majekodunmi, Mr Babajide Balogun, Babashola Alokolaro, Ladi Ani-Mumuney, Prince Francis Awogboro and Corporate Affairs Commission as 1 to 7 respondents respectively.

Among the reliefs sought by plaintiffs are a nullification and/or setting aside the October 5, 2020 election of the club; nullification and/or setting aside his expulsion or suspension from the Club and relisting his name as a validly nominated and qualified candidate for election to serve as a Duty Officer of the Committee of the 1st Defendant.

He had alleged that his expulsion and later suspension had prevented him from running in the 2020 Elections for the post of Duty Officer of the 1st Defendant Club.

According to him, the action of the trustees of the club was unlawful, wrongful and unjustifiable under the Rules and Byelaws of the 1st Defendant Club.

Accordingly, he sought amongst other things for an Order of Court for fresh elections to be conducted for the position of officers and members of the Committee of the 1st Defendant.

“An Order directing and/or compelling the 7th Defendant, the Corporate Affairs Commission pursuant to its powers under Section 839, Part F of the Companies and Allied Matters Act 2020 and its general powers under section 8(c) of the Act to suspend the Trustees of the 1st Defendant Club and appoint interim managers for the purpose of administering the affairs of the 1st Defendant Club.

“Disbanding and replacing the Trustees of the 1st Defendant Club pending the appointment or reconstitution of the new Trustees by the Corporate Affairs Commission.

“Conducting fresh elections for offices of the members or officers of the Committee of the 1st Defendant and all other elections.

“Reconstituting the Registered Trustees in line with the Rules and Byelaws and statutory provisions of the Companies and Allied Matters Act.

‘”An Order directed specifically at the 6th Defendant, Prince Francis Awogboro removing him as a Trustee of the 1st Defendant Club”.

However, in his judgment, Alagoa noted that the plaintiff did not comply with the provisions of section 839(2) and (3) of Companies and Allied Matter Act, since he is not the one-third majority envisaged by that Law. So, he could not remove the Trustees and the 6th Defendant from office.

The Court further held that, the Plaintiff did not satisfy the provision of Rule 19( c) of the Byelaws of the Lagos Motor Boat Club because he, the Plaintiff does not constitute three-quarters of the majority vote by Members present and voting at any General Meeting for the removal of Trustees.

Consequently, the judge held that the plaintiff lacked locus standi to ask for the removal of the Trustees and the 6th Defendant.

Justice Alagoa also agreed with the submissions of defence counsel for the 1st -5th Defendants and 6th Defendant that the court only deals with “live” issues and no more, adding that since the tenure of the officers elected in 2020 has lapsed and 2021 elections have been held in accordance with the byelaws of the 1st Defendant Club, it is no longer a live issue. It is academic and the Court cannot be called upon to determine a matter that has become academic.

The Court then declined jurisdiction to entertain the Plaintiff’s suit and struck out the suit.