The Supreme Court has unanimously dismissed an application to quash an order of the High Court, which confirmed the merger of Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited.
In November 2019, the High Court in Accra granted an Order confirming the merger of Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited to form Dannex Ayrton Starwin Plc, a public company listed on the Ghana Stock Exchange.
However, the confirmation order was challenged both at the High Court and the Supreme Court.
The confirmation order was challenged for several reasons including the fact of the subsistence of an Appeal pending at the Court of Appeal seeking to declare null and void the rights issue conducted by Starwin Products Limited in 2013.
It would be recalled that it was by the said rights issue that Dannex Limited became majority shareholder of Starwin Products Limited paving the way for the merger.
The action at the High Court and subsequently the Supreme Court was mounted by a number of shareholders including Mirfield Properties Limited, Dr. Albert G Boohene, Enviro Solutions Limited, James Akpaloo and Samuel Kwasi Adjei.
However, by a unanimous decision of the Supreme Court, the Application for Certiorari was dismissed outright.
In previous proceedings, the Court of Appeal, on 13th March, 2020, and by a unanimous decision dismissed appeals filed by Dr. Albert G. Boohene and Mirfield Properties Limited challenging the rights issue conducted by Starwin Products Limited in 2013.
The two judgments therefore preserve both the rights issue of Starwin Products Limited as well as the subsequent merger between Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited.
