A manufacturing company has filed a ₦100 million suit against the Corporate Affairs Commission (CAC) and two others over the alleged registration of an identical company resulting in its loss of revenue.
The company, Artco Industries Limited, in a suit marked: FHC/ABJ/CS/164/2024 filed through its Lawyer, Emmanuel Ekpenyong of Fred-Young & Evans LP, before Justice Binta Nyako of a Federal High Court, Abuja sued CAC as 1st defendant.
In the suit dated February 7 but filed February 8, the company which is in the business of manufacturing furniture at Idu Industrial Area, also joined Artco Furniture Manufacturing Company Limited and Chief Dr. Onyekachi Iheme as 2nd to 3rd defendants respectively.
The plaintiff sought a declaration that the 2nd defendant’s name registered on September 24, 2021, is similar to its name, “registered since October 30, 2003. This, he said, has misled members of the general public into believing that the plaintiff’s and 2nd defendant’s companies are owned by the same persons or that the 2nd defendant is a subsidiary of the plaintiff.”
The plaintiff urged the court to declare that the acts of the defendants contravened the provisions of Section 852 (1) of the Companies and Allied Matters Act (CAMA), 2020.
The CAMA Act, he added, forbids the registration of a company whose name is identical to an existing name or a name which nearly resembles an existing name as to be calculated to deceive members of the public. It, therefore, sought an order directing the CAC to deregister and strike out the name of the 2nd defendant, Artco Furniture Manufacturing Company Limited, from its database.
The company further sought an order directing the defendants to jointly and severally pay the sum of ₦100 million for damages resulting from loss of revenue as a result of CAC’s failure to carry out due diligence before registering the 2nd defendant.
It alleged that the 2nd defendant was used by the 3rd defendant, Iheme, as a vehicle to divert and siphon its businesses and business opportunities and mislead unsuspecting members of the public into believing that the 2nd defendant is a subsidiary of the plaintiff.
In the statement of claim, the plaintiff averred that on June 10, 2020, the plaintiff entered into a partnership agreement with Dr Anthony Ezekwugo and Iheme.
The partnership, he said, was for the marketing and sales of its furniture and products at the Artco Showroom located at Suites 31 and 32, Plot 1721, Ademola Adetokunbo Crescent, Wuse 2, Abuja. He said the agreement was for two years and for a commission of 15% of the sales.
The plaintiff alleged that instead of marketing the plaintiff’s furniture at the Showroom, on September 24, 2021, Iheme registered Artco Furniture Manufacturing Company Limited with RC Number: 1844784 with similar objects as that of the plaintiff to divert its business and business opportunities.
“Whilst the agreement was still subsisting and its furniture and products were in the showroom, the 3rd defendant (Iheme) dubiously and surreptitiously incorporated the 2nd defendant as a corporate vehicle, which he used to divert the business of the plaintiff under the agreement.
“In a viral online marketing video to the whole world, the 3rd defendant impersonated himself as the CEO of the plaintiff and portrayed the plaintiff’s workshop and factory at Idu Industrial Area, Abuja as that of the 2nd defendant without stating that he is a mere marketing agent of the plaintiff and knew that there is no connection whatsoever between the plaintiff and the 2nd defendant.
“In spite of the expiration of the partnership agreement entered into between the plaintiff on one hand and Dr Anthony Ezekwugo and the 3rd defendant on the other hand by effluxion of time, the 2nd and 3rd defendants have continued to carry on business with the plaintiff’s furniture, trademark and goodwill.”
The plaintiff said upon discovering that Iheme incorporated a similar company, a letter dated July 19, 2023, and a reminder letter dated September 6, 2023, from the law firm of Fred-Young & Evans LP, was written to CAC to deregister Artco Furniture Manufacturing Company Limited, but it failed to do so.
Against this development, the plaintiff sued the defendants to seek redress in court. Justice Nyako fixed October 7 for the hearing of the suit.
