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EID v. EID AND ANOTHER

1978

COURT OF APPEAL

GHANA

CORAM

  • APALOO C.J.
  • KINGSLEY-NYINAH
  • FRANCOIS JJ.A

Areas of Law

  • Equity and Trusts
  • Probate and Succession
  • Civil Procedure

AI Generated Summary

Two minor children of the late Sami Aziz Eid, a naturalised Ghanaian of Lebanese origin, were the sole beneficiaries of his intestate estate, principally the Tema Alpha Bakery. Their co-administratorsthe deceaseds brother (appellant) and widowexecuted a deed transferring the bakery to Piccadilly Biscuits Ltd (formerly Semi African Enterprises Ltd) for shares to be issued in the infants names. The appellant was the companys majority shareholder and chairman. The infants grandfather, Elias Mansour Sakour, acting as next friend, sought to annul the agreement. Apaloo C.J. held that section 1 of Act 63 did not itself make administrators trustees, but that under section 102 they had validly constituted themselves as trustees. Nonetheless, the transfer was a gross breach of fiduciary duty: no independent valuation or advice was obtained, the court was not consulted, and the assets were placed in a private company controlled by the trustee and subject to import licence vagaries. The court ordered conversion of the shares to cash, imposed interest at the prevailing bank rate (12.5%), directed accounts and replacement of trustees subject to court approval, corrected the omission of costs below (2500), and dismissed the appeal with costs.

JUDGMENT