CASE DIGEST – ARBITRATION: THE LAW DOES NOT RECOGNISE LIFE TENURE FOR MANAGING DIRECTORS OR BOARD CHAIRMEN
CASE DIGEST – ARBITRATION: THE LAW DOES NOT RECOGNISE LIFE TENURE FOR MANAGING DIRECTORS OR BOARD CHAIRMEN
U.O.O. (NIG.) PLC v. OKAFOR & ORS.
SUPREME COURT OF NIGERIA
(RHODES-VIVOUR; PERTER-ODILI; NWEZE; AUGIE; EKO, JJ.SC)
U.O.O. (Nig.) Plc (the Appellant) was founded by the late Nze Uche Okafor who had seven wives and fifty-five children. Prior to his death, he formally resigned his position as Chairman, Managing Director, and Chief Executive Officer of the company through a written letter addressed to the Board of Directors, and nominated his son, Edozie Uche Okafor, as his successor to those offices.
Subsequently, at a General Meeting of the company, it was resolved that the late Nze Uche Okafor be retired from his positions on the grounds of old age, and that Mr. Edozie Uche Okafor be appointed in his stead as Chairman, Managing Director, and Chief Executive Officer of the company. This appointment was stated in paragraph 80(d) of the company’s Articles of Association.
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