Supreme Court restores Olanipekun and Banire as company counsel
The Supreme Court of Nigeria has overturned a previous ruling that disqualified Chief Wole Olanipekun (SAN) and Dr Muiz Banire (SAN) from representing Neconde Energy Limited and Nestoil Limited. The court affirmed the companies’ right to choose their own legal counsel, even while the validity of a receiver’s appointment is being challenged. Justice Mohammed Idris delivered the unanimous judgment, emphasizing that a receiver cannot dictate legal representation if their own appointment is under dispute. The decision also addresses an alleged $2bn debt involving a consortium of lenders led by FBNQuest Merchant Bank Limited and FBN Trustees Limited.
What we know
- The Supreme Court set aside the Court of Appeal’s decision that had disqualified Olanipekun and Banire as counsel for the companies.
- The court ruled that a receiver whose appointment is being challenged cannot appoint legal counsel for the company in the same proceedings.
- Justice Idris stated that allowing such a receiver to control legal representation would create a conflict of interest.
- The ruling restores Olanipekun and Banire as counsel in the dispute over an alleged $2bn debt to a lender consortium.
- The Supreme Court emphasized that companies retain the right to defend themselves through counsel chosen by their directors when the validity of a receivership is in question.
