AGC Loses Case

An Accra High Court yesterday ordered that Ashanti Goldfields Company Limited to convene an emergency General Meeting within 21 days to discuss the election of a new board for the company.

The Court, presided over by Mr. Justices Richard Apaloo, also restrained the present Board of Directors or any officer of the company from contracting any loan or executing any instrument that would impose any financial constraints on the company until the meeting is held. The court however, refused an application to permit the sale of all, any or part the company?s interest in its mining assets.

Counsel for AGC, Mr. Kwame Tetteh said in a post judgement interview that AGC might appeal. Five shareholders of the company, led by Adrix Mining and Metal Limited took AGC to court to demand the removal of the company?s present board, which they say is responsible for the current crisis in the company.

Mr. Justice Apaloo in his ruling, said although the court was convinced that four of the applicants are not shareholders, Stringray, which was among the applicants, is a member of the company with 212,100 shares. Justice Apaloo said any member of the company including Stringay could apply for a general meeting.

Mr. Justice Richard Apaloo said there AGC?s present financial crisis would require an emergency general meeting to resolve. Counsel for the applicants, Mr. Tony Lithur argued that the present structure of the AGC Board is tilted in favour of Lomnin PLC, which has 32 per cent shares. This he said has rendered the board less independent.

The applicants also contended that the current crisis facing the company could best be resolved by the immediate sale of some of its assets and not borrowing as being contemplated by the Board.

AGC who were represented in the case by Mr. Kwame Tetteh argued that the ambivalence surrounding the case indicates some hidden agenda by the applicants. They therefore said the court would not be able to know the direction to take in the case.

Mr. Tetteh also argued that the applicants are not shareholders of AGC who have a right to attend the meeting they were demanding.