Court fails to grant transfer of Arik Air assets to another company

The Asset Management Company, AMCON on Friday failed to secure Court’s permission to transfer Arik Air Assets to another company to run their operations.

Acting as Receiver/Manager, the Group Head, AMCON, Kamilu Alaba Omokide, had handed the management of Arik Air to NG Eagle Limited and Super Barvo Limited.

Not satisfied with the decision, the management of Arik Air approached the Justice Ambrose Alagoa Court to set aside the decision.

Arik Air led by its founder, Johnson Arumemi Ikhide and co-plaintiff, Mary Arumemi Ikhide, dragged AMCON, its Group Head, Mr Omokide; NG Eagle Limited; Super Bravo Limited, and Nigeria Civil Aviation Authority (NCAA) before the the Federal High Court over the taking-over of Arik Air Limited’s assets and management.

In the suit, the plaintiffs prayed the Court for four reliefs which included a declaration that the duty imposed on the 1st Defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk Air Limited.

A declaration that the transfer of Arik Air Limited assets to the 3rd Defendant (NG Eagle Limited) and/or 5th Defendant (Super Bravo Limited) by the 1st Defendant (Omokide) was done In bad faith and is a violation of the 1st Defendant’s (Arumemi) fiduciary duty to Arik air Limited as a whole.

A declaration that the appointment of the 1st Defendant as Receiver/Manager of Arik Air Limited is improper and wrongful.

A declaration that the directors and shareholders of the Arik Air Limited, including the Plaintiffs still have rights and powers regarding Arik Air Limited save as regards to the day to day management of the Plaintiff.

After listening to arguments by Counsels to all parties in the suit, Justice Lewis-Allagoa consequently set aside the taking-over of Arik Air by AMCON.

He also directed the 1st and 2nd Defendants to render accounts and/or deliver returns to the Corporate Affairs Commission (CAC) covering the entire period of the receivership over Arik Air Limited within 14 days of making of the order.

The Judge held that the decision to appoint Receiver/Manager for Arik Air Limited was wrongful and improper.

The court further held, “That a Declaration is made that the duty imposed on the 1st Defendant by Section 553 of the Companies and Allied Matters Act 2020 to act in the best interest of Arik Air Limited as a whole includes the duty to act in the best interest of the Plaintiffs as members of Airk air Limited.

“That a Declaration is made that the transfer of Arik Air Limited assets to the 3% Defendant and/or 5th Defendant by the 1s! Defendant was done in bad faith and is a violation of the 1st Defendant’s fiduciary duty to Arik air Limited s a whole as imposed by Section 553 of the Companies and Allied Matters Act 2020.

“That a Declaration is made that the 2nd Defendant is vicariously liable for the acts of the 1st Defendant.

“That a Declaration is made that in spite of the appointment of the 1st Defendant as Receiver/Manager of Arik Air Limited, the organs of Arik Air Limited including directors and shareholders subsist.

“That a Declaration is made that the directors nd shareholders of the Arik Air Limited, including the Plaintiffs still have rights and powers regarding Arik Air Limited save as’ regards to the day to day management of the Plaintiff.

“That an Order is granted setting aside the transfer of Arik Air Limited’s assets by the 1st Defendant or 2nd Defendant to the 3rd Defendant and/or 5th Defendant.

“That an Order is granted directing the 1st and 2nd Defendants to allow the Directors and shareholders of Arik Air Limited unfettered access to their offices, premises of the! Plaintiff, facilities and staff required for the discharge of their functions.

“That an Order is granted directing the 1st and 2nd Defendants to render accounts and/or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days of the making of this order.”