Shareholders sue directors of Solel Boneh, Israeli firm, over alleged diversion of assets

The minority shareholders, in a petition filed before the federal high court in Abuja, accused the majority shareholders and directors of allegedly running Solel Boneh aground by surreptitiously diverting its assets and businesses to other companies which they exclusively control.

Shareholders/directors cited as respondents in the petition include Musa Nakhla, Adedayo Odeyemi, Shari Arison, Natty Saidoff, as well as Adamu Safuratu Idowu, the company secretary.

Others are Reynolds Construction Co. Ltd, Reynolds Construction Company Limited, Shikun & Binui Solel Boneh, SBI International Holdings AG, C & D (Nigeria) Limited and the Corporate Affairs Commission (CAC).

The petitioners said Akin-Deko facilitated the incorporation of Solel Boneh in Nigeria after he left office, held a 30 percent equity stake in the company and served as chairman for about 20 years until his death in 1987.

The petitioners, in court documents, said that before Akin-Deko’s death, his 30 percent shares in Solel Boneh and his interest in the company devolved on them as a matter of share transmission under the company law.

The petitioners are seeking an order to compel the 1st to 4th, 6th, and the 8th to 12th respondents to purchase their entire shares in Solel Boneh for N2 billion in view of “the missed opportunities of capital appreciation and returns on investment due to the years of misappropriation, co-mingling and oppressive conducts and the profits that the petitioners could have made over the years.”

They also seek a consequential order directing that the N2 billion payable for the purchase of the shares of the petitioners “shall be paid jointly and severally by the 1st to 4th, 6th, and the 8th to12th respondents to the petitioners within three days from the date of judgment, and upon default, with interest at the prevailing bank rate.”

On March 14, Donatus Okorowo, a justice of the federal high court, Abuja granted the petitioners’ motion ex-parte for substituted service of the petition and other processes in the case on the 3rd, 4th, 11th and 12th respondents (namely Shikun & Binui Solel Boneh, SBI International Holdings, Arison and Saidoff at their last known addresses in Israel, Switzerland, and USA.