Nigerian High Court Rules Against Assets Management Company, AMCON In Arik Airlines' Takeover | Sahara Reporters

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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.

March 31, 2023

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.”

“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 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.

 

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