The battle between shareholders of top multi-level marketing company, Edmark Direct Marketing Limited has hit a new twist as a Federal High Court sitting in Lagos has issued a further interim order reaffirming the appointment of a Receiver/Manager and that the company, its distributors or any other person cannot import or sell Edmark-branded products except through the Receiver/Manager, Seyi Akinwunmi.
In addition, the court ordered the Nigerian Customs Services and the Nigerian Police to assist the Receiver/Manager in prohibiting the directors of Edmark Direct Marketing Ltd (and their agents) from circumventing the Receiver/Manager in importing, marketing, selling and/or distributing the Edmark products.
The ruling comes as the battle between shareholders of the company deepens.
The suit is between Etim Maurice Anthony (Nigerian shareholder) Low Ban Chai (foreign shareholder), Edmark Direct Marketing, Edmark Direct Holding Limited, Wapiano Bienviendo and Jorolan Noel Noa.
According to the registrar’s notice of consequence of disobedience sighted by journalists, the court made a further interim order empowering Akinwunmi, a legal and insolvency practitioner of Akinwunmi & Busari, to take into custody certain funds which Maurice Etim was entitled to in the hands of the third parties, pending the hearing and determination of the motion on notice.
Furthermore, the court directed all banks to attach the accounts of two Edmark officials/employees: Batusin Rey Cudeira (head of treasury) and Abubakar Abass (branch in-charge) for receiving cash sales in circumvention of the court-appointed receiver/manager.
The court also made an interim order directing all banks to attach the bank accounts of Edmark City Development Limited, ED2E Technology Nigeria Limited and Megawong Nigeria Limited and within seven days of being served the order, the banks should file an affidavit disclosing the statement of all accounts linked to the persons and entities earlier mentioned from June 23, 2022, to date and serve same on the parties through their counsel and to the receiver/manager.
The court also mandated the persons and entities mentioned: Batusin Rey Cudeira, Abubakar Abass Edmark City Development Limited, ED2E Technology Nigeria Limited and Megawong Nigeria Limited within seven days of service of the order to immediately give full account of Edmark’s monies received from June 23, 2022, to date.
Etim had dragged the foreign majority shareholder, Chai, to court for allegedly forging his signature to appoint more directors. He also averred that his rights such as the right to attend meetings and vote, appointment and removal of company secretary, and access to accounting records were breached.
Etim is also praying the court to appoint Deloitte Nigeria so it can conduct a forensic audit of Edmark and its affiliate company.
Justice C. J. Aneke adjourned the suit till November 14, 2022, for further hearing.
