The battle between shareholders of top multi-level marketing company, Edmark Direct Marketing Limited has hit a new twist as a Federal High Court sitting in Lagos has issued a further interim order reaffirming the appointment of a Receiver/Manager and that the company, its distributors or any other person cannot import or sell Edmark-branded products except through the Receiver/Manager, Mr. Seyi Akinwunmi.
In addition, the court ordered the Nigerian Customs Services and the Nigerian Police to assist the Receiver/Manager in prohibiting the directors of Edmark Direct Marketing Ltd (and their agents) from circumventing the Receiver/Manager in importing, marketing, selling and/or distributing the Edmark products.
In the Suit No: FHC/L/CP/890/2022 between Etim Maurice Anthony (Nigerian Shareholder) and Low Ban Chai (foreign shareholder), Edmark Direct Marketing, Edmark Direct Holding Limited, Wapiano Bienviendo and Jorolan Noel Noa before Justice C.J. Aneke, the court’s orders gives further effect and assistance to the earlier interim order and appointment of Receiver/Manager made on May 24, 2022.
According to the registrar’s notice of consequence of disobedience sighted by our correspondent, the court made a further interim order empowering the Receiver/Manager, Mr. Seyi Akinwunmi, a Legal and Insolvency Practitioner of Akinwunmi & Busari, to take into custody certain funds which Mr. Maurice Etim was entitled to in the hands of the third parties, pending the hearing and determination of the motion on notice.
Furthermore, it directed all banks to attach the accounts of two Edmark officials/ employees: Batusin Rey Cudeira (Head of Treasury) and Abubakar Abass ( Branch in-Charge) for receiving cash sales in circumvention of the court appointed Receiver/Manager.
The court also made an interim order directing all banks to attach the bank accounts of Edmark City Development Limited, ED2E Technology Nigeria Limited and Megawong Nigeria Limited and within seven days of being served the order, the banks should file an affidavit disclosing the statement of all accounts linked to the persons and entities earlier mentioned from June 23, 2022 to date and serve same on the parties (through their counsel and to the receiver/manager.
That was not all, the court also mandated the persons and entities mentioned: Batusin Rey Cudeira , Abubakar Abass Edmark City Development Limited, ED2E Technology Nigeria Limited and Megawong Nigeria Limited within 7 days of service of the order to immediately give full account of Edmark’s monies received from June 23, 2022 to date.
This latest order is good news for the Nigerian minority shareholder, Mr. Etim who had dragged the Foreign majority shareholder, Mr Low Ban Chai to court for arranging a forgery of his signature to appoint more directors in effort to edge the Nigerian out of the company, amongst other actions of oppressive, unfair and prejudicial breached against the Nigerian minority.
He also averred that his relevant rights such as right to attend meetings and vote, appointment and removal of company secretary, access to accounting records were breached.
In addition to prayers such as appointment of a Receiver/Manager, he wanted the court to appoint Deloitte Nigeria so it can conduct a forensic audit of Edmark and its affiliate company. The suit has been adjourned to November, 14, 2022 for further hearing.