AMCON took over the airlines in February 2017 and appointed Omokide as its receiver manager with the mandate to turn around the fortunes of the then biggest private carrier within a short period of time.
The Federal High Court in Lagos State has ruled against the appointment of Kamilu Omokide as Receiver Manager Arik Air Limited by Asset Management Corporation of Nigeria (AMCON) after it took over the firm.
AMCON took over the airlines in February 2017 and appointed Omokide as its receiver manager with the mandate to turn around the fortunes of the then biggest private carrier within a short period of time.
However, Arik founder, Michael Arumemi-Ikhide, kicked against the decision and approached the court.
The defendants in the matter are Kamilu Alaba Omokide (First) , Asset Management Corporation of Nigeria (Second), NG Eagle Limited (Third), Nigerian Civil Aviation Authority (Fourth) and Super Bravo Limited (Fifth).
Delivering judgement on Friday, Justice Lewis-Allagoa ruled that the transfer of Arik Air Limited assets to the 3rd Defendant and/or 5th Defendant by the 1st Defendant was done in bad faith and “a violation of the 1st Defendant's fiduciary duty to Arik air Limited as a whole as imposed by Section 553 of the Companies and Allied Matters Act 2020.”
It also granted an order directing Omokide and AMCON to render accounts or deliver returns to the Corporate Affairs Commission covering the entire period of the receivership over Arik Air Limited within 14 days.
“IT IS HEREBY ORDERED AS FOLLOWS: That a Declaration is made that the duty imposed on the 1st Defendant by Section 553 of the Companies and Certified Truecopy 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 by transferring or attempting to transfer Arik Air Limited assets to the 3rd Defendant and/or 5th Defendant, the 1st Defendant did not act in the best interest of Arik Air Limited as a whole and thereby failed in his duty to act in accordance with Section 553 of the Companies and Allied Matters Act 2020.
“That a Declaration is made that the 1st Defendant is liable for any losses suffered by ArikAirLimited and/or its members as a result of the transfer of Arik Air Limited's assets to the 3rd Defendant and/or 5th Defendant.
“That a Declaration is made that by virtue of Section 553(1) of the Companies and Allied Matters Act 2020 the 1st Defendant is an agent of the 2nd Defendant.
“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 th 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 setteing aside the teansfer 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 Affiars Commossion covering the entire period of the receivership over Arik Air Limited within 14 days of the making of this Order.”