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…To restitute 549,453 Union Bank Plc, 2,083 Guinness Plc shares
HARRISON EDEH,ABUJA
Four stockbroking firms namely – Union Registrars Limited, UIDC Securities Limited, Gosord Securities Limited and Kapital Care Trust Securities Limited, have been sanctioned for irregular transactions and unlawful sale of multi-million naira worth of an investors’ shares.
Delivering judgment in a case instituted by Okam Kalu Ugwu, a medical doctor, against the Securities and Exchange Commission (SEC) and the four firms, the Investments and Securities Tribunal sitting in Enugu, ordered that all irregular transactions in the Union Bank shares variously numbering 9,740 units, 20,740 units, 13,333, units, 9, 740 units, 25, 000 units, 16, 000, and 12, 986 units contained in different share certificates are declared illegal, unlawful, null and void.
The Tribunal also ordered that the 16, 876 units, 5,000 units, 850 units and 2,813 units of Union Bank shares purportedly covered by four other certificates be expunged from the claim, having not been established by credible evidence.
In the judgment delivered by Presiding Chairman, Nosa Smart Osemwengie, the Tribunal also reached the verdict that Union Registrars Limited, UIDC Securities Limited and Gosord Securities Limited are to restore and restitute the claimant with 549,453 Union Bank shares and all bonuses and dividends, in line with capital market rules, practice and procedures not later than 30 days from the date of the judgment.
Other Members of the Tribunal on the Panel that reached the verdict are – Abubakar A. Ahmad, Albert l. Otesile, Mamman B. Zargana, Kasumi G. Kurfi and Onyemaechi E. Elujekor.
Union Registrars Limited was equally ordered to restore the name of the Claimant Okam Kalu Ugwu in the register of share-holders of Union Bank Plc as relates to the disputed shares, in line with capital market rules, practices and procedures, not later than 30 days from the date of the judgment.
All irregular transactions in the Claimant’s Guinness Plc shares covered by certificate number 22279776 were also declared illegal, null and void and Union Registrars Limited (2nd Defendant) and UIDC Securities Limited (3rd Defendants) were ordered to restore and restitute the claimant with 2,083 units of Guinness Nig Plc with accrued bonuses and dividends, unlawfully verified, transferred and sold to third parties through their platforms, not later than 30 days from the date of the judgment while Union Registrars (2nd Defendant) is to restore the name of the claimant in the register of shareholders of Guinness Nigeria Plc.
Kapital Care Trust Securities Limited, being the fifth defendant, was ordered to restore and restitute the claimant with the 72,151units of Union Bank shares and accrued bonuses and dividends it unlawfully dealt with in line with Capital Market Rules, Practice and Procedures, not later than 30 days from the date of the judgment and as well fined N100, 000 (One Hundred Thousand Naira) to be paid into the coffers of the Federal Government of Nigeria for breach of professional ethics in dealing with shares of the Claimant.
The sum of N5, 000, 000 (Five Million Naira) only was awarded as general damages against the Union Registrar Ltd., UIDC Securities Limited , and Gosord Securities Ltd. jointly and severally in favour of the Claimant.
Restating the account of the case, Osemwengie said the action was commenced by way of Originating Application filed by the Claimant, Okam Kalu Ugwu, a Medical Doctor who claimed that he had over a total of 549, 453 units of Union Bank shares at all time material to the commencement of the action.
He alleged that a total of 133, 078 units of the shares were unlawfully verified, dematerialised and transferred to third parties by some of the defendants without his authority, consent and knowledge.
