Barely 24 hours after the Labour division of an Accra High Court threw out an application for interlocutory injunction filed by Union of Commerce, Industry and Finance workers (UNICOF) to stop moves by the management of Agricultural Development Bank (ADB) to list on the stock exchange, Citi Business News has sighted another writ filed at the supreme court for another order of interlocutory injunction by the Union.
UNICOF had earlier filed a suit at the Supreme Court challenging the ADB IPO due to the bank’s failure to seek parliamentary approval.[contextly_sidebar id=”oatH7ppHZcxyu3mxfWcLCissOD9DWguu”]The motion on notice is seeking an order of interlocutory injunction to restrain the defendant ADB, their agents, assigns, privies and or contractors from proceeding with continuing, or resuming the sale of the shares of the bank pending final determination of the suit filed at the court.
The new motion for an order of interlocutory injunction has ADB as the 1st defendant and the Attorney General and minister of Justice as the 2nd defendant.
According to UNICOF, the 1st Defendant Bank failed to follow due process in preparing a prospectus to list on the Ghana Stock Exchange and sell more than 74 million existing shares with plans to issue more than 75 million additional shares.UNICOF is also accusing ADB management of perpetuating an illegality by signing two memoranda of understanding with two foreign companies for the allotment of a number of shares to those companies.
The Union says the two agreements signed by ADB and the Norwegian Fund for Developing Countries to offer them 15% of the shares and Atlas Mara having acquired 25% respectively did not receive Parliamentary approval as an international transaction.UNICOF is seeking the Supreme Court declares as unconstitutional the moves by ADB to list on the bourse and sell 40% of the company to foreign companies. The workers union is accusing ADB management of disrespecting the court by continuing with the sale of its shares in gross disregard of the pending suit.That while this matter is pending before this honourable court and is yet to be decided by the court the 1st Defendant is selling its shares in gross disregard of the pendency suit.
Therefore if ADB was not restrained pending the determination of the matter by this court will complete the exercise and or honour the two agreements and overreach them of this action and render same otiose, nugatory and moot, as it will be impracticable to reverse the situation in the likely event that the plaintiff’s claim are upheld by this honourable court.
Lawyer for UNICOF Charles Bawaduah has been speaking to Citi Business News insisting that the union was only making that the right thing was done.
“My client is seeking to ensure that the employees shares is not sold which is the subject of contention and the MOU’s signed with the two foreign companies also in our opinion needed parliamentary approval before it can be rectified.”
By: Norvan Acquah-Haford/citifmonline.com/Ghana