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General News of Friday, 2 September 2011

Source: Daily Guide

Court Adjourns STX Case

An Accra Fast Track High Court yesterday adjourned sine die (indefinitely) the case in which STX Korea is initiating legal action against six respondents including Bernard Kwabena Asamoah, the man credited for introducing the STX housing deal to the NDC government.

The controversial multi-billion STX Housing Project deal entered into by the Government of Ghana with STX Engineering & Construction Ghana Limited, for the construction of 200,000 houses in Ghana, within a period of five years estimated at $10billion, landed in court due to disagreements between the Korean and the Ghanaian partners.

The court presided over by Justice C.N. Abodakpi adjourned proceedings. without giving a definite date, to enable the plaintiff (STX Korea) to serve all the defendants with the writ of summons in the case.

When the case was called at exactly 9:26 am, the plaintiff and the defendants, with the exception of STX Engineering & Construction Company Ghana Limited, were not represented in court.

However, Daniel Jung, who is the Chief Finance Officer of STX Engineering & Construction Company Ghana Limited, represented the 6th defendant.

Osafo Buaben, counsel for STX Engineering & Construction Company Ghana Limited, told the court “I have not received any process from the defendants except the Registrar-General who has entered appearance and filed affidavit all by himself.

“My Lord in the circumstance, I will ask for an adjournment to enable us serve the processes on the defendants.”

The court then adjourned the proceedings sine die to await proof of service on the defendants.

The suit was filed on July 26, 2011 and it cited G.K. Airports Company Limited; Joseph Bardolph Asafo-Boakye, a Director of STX Ghana, George Padi, Registrar-General as well as STX Engineering & Construction Company Ghana Limited as the 1st, 3rd, 4th, 5th and 6th respondents, with B.K. Asamoah as the 2nd respondent.

In the notice of motion, STX Construction Company Limited is seeking reliefs including “a declaration that the special resolution purportedly dated February 25, 2011 and filed at Registrar General’s Department by B.K. Asamoah to increase the stated capital in STX Engineering & Construction Company Ghana Limited without the consent and knowledge of the plaintiff” is null and void and of no effect.

It also wants a declaration that the special resolution ‘purportedly’ dated May 13, 2011 and filed with the Registrar-General’s Department on May 16, 2011 seeking to forfeit the shares of STX Engineering & Construction Company Ghana Limited is contrary to Regulations 9 (4), 15-27 of the company and S.30 (5) of Act 179 and therefore null and void and of no effect.

Furthermore, STX Construction Company Limited wants a declaration that the ‘Corporate Board Resolution’ purportedly passed by Messrs B.K. Asamoah and J. B. Asafo-Boakye without their consent and knowledge on January 28, 2011, authorizing B.K. Asamoah to solely represent STX Engineering & Construction Company Ghana in its dealings with Plainfield Holding AG of Switzerland, is null and void and of no effect.

It also wants a declaration that the purported appointment of George Padi by Messrs B.K. Asamoah and J. B. Asafo-Boakye as a Director of STX Engineering & Construction Company Ghana without their consent and knowledge is unlawful and contrary to Section 181 of the Companies Act (Act 179) and therefore null and void.

STX Construction Limited therefore wants an order of injunction to restrain STX Engineering & Construction Company Ghana “from acting in any manner whatsoever on the resolutions of January 28, 2011, February 25, 2011 and May 13, 2011”.

It also wants another order directed at the Registrar-General to expunge the special resolutions of February 25, 2011 and May 13, 2011 from its records as well as an order to restrain Mr. George Padi from holding himself out as a Director of STX Engineering & Construction Company Ghana Limited and also restrain STX Engineering & Construction Company Ghana Limited from holding out Mr. Padi as a Director.

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