Law Society To Sue CAC N5bn Over ‘Defamatory’ Publication

A Senior Advocate of Nigeria (SAN), Chief Bolaji Ayorinde, has threatened to sue the Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, SAN, over an alleged defamatory publication against the Nigerian Law Society (NLS).

Ayorinde is the Chairman of the Board of Trustees of the NLS, a professional association of lawyers, which the CAC says is operating without registration.

The emergence of the NLS is also being opposed by the Nigeria Bar Association (NBA), the umbrella body of Nigerian lawyers.

Daily Trust had exclusively reported that the Registrar General of the CAC had written to the Attorney General of the Federation, Lateef Fagbemi, SAN, seeking approval to prosecute the Nigerian Law Society and other corporate entities operating without registration in the country.

Ayorinde, in the letter, written on 12th August and acknowledged on 16th August by the CAC noted that he was the 1st plaintiff in suit No. FHC/ABJ/CS/482/2023 between Chief Bolaji Ayorinde, SAN, OFR & 5 Others V. Corporate Affairs Commission, which was decided on 15th December, 2023.

He accused the CAC of refusing to register the NLS as ordered by the court.

Parts of the letter read: “In the said judgment, the Honourable Court clearly granted all the Plaintiff’s claims and specifically directed your Commission to register the Nigerian Law Society.

“Your Commission has failed, refused and or neglected to obey the judgment of the Federal High Court and whose judgment remains extant even though you have filed an appeal on record. It is also noted that despite filing the same appeal, you have not secured any order to stay the direction in the judgement.”

Ayorinde said the CAC Registrar General misled the public by “deliberately” failing to make any reference or allusion to the existence of the judgment in suit No. FHC/ABJ/CS/482/2023.

Stressing that the claims made by the CAC against the NLS are untrue, false and misleading, Ayorinde asked the Registrar General to issue a public letter of apology to retract and correct the alleged defamatory publication.

Ayorinde warned that if the retraction is not published within seven days of the receipt of the letter, he would have no other choice than to sue the CAC Registrar General in court to compel the retraction.

“Furthermore, I shall seek monetary damages from you and the Corporate Affairs Commission jointly and severally in the sum of =N=5 Billion Naira.” Ayorinde added

However in a swift response, the CAC Registrar, in a letter dated 19th August and seen by Daily Trust replied Ayorinde noting that the commission had appealed the judgement and the NLC was operating illegally.

The letter read in part: “I am also very sure that you are aware of the seeming fact that CAC has filed an Appeal against the decision of the Federal High Court

“While I am a bit constrained to agree with your legal postulation which is to the effect that an appeal does not operate as a stay of execution, it is pertinent to note that this principle does not operate as a catte blanche. Specifically, it is long settled by the Apex Court that although an appeal does not operate as a stay. However, where the appeal is entered, it becomes most desirable for both parties and the trial Court to ensure that no fait accompli is thrust upon the appellate Court.”

The RG added that: “My position is very firm; your continuous action of trading under an unregistered name is an infraction and a gross violation of S. 863 (1 ) and (2) of the Companies and Allied Matters Act 2020, which provides thus:

“S. 863 (1) A person or association of persons shall not carry on business in Nigeria as a company, limited liability partnership, limited partnership or under a business name without being registered under this Act.

“(2) If an individual, corporation, or association of persons required under this Act to be registered carries on business without registration or under a name registration of which has been refused or cancelled under this Act, the individual, corporation or every partner in the firm commits an offence and is liable on conviction to a fine prescribed in the Commission’s regulations.”