MADAM SOON - HWA LEE VS SANSTEV CO. LTD & ANOR
2016
HIGH COURT
GHANA
CORAM
- JUSTICE GEORGE BUADI J.
Areas of Law
- Contract Law
- Corporate Law
- Civil Procedure
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff, a Korean national, sued the defendants (a company and its director) for failing to allocate agreed shares after her investment and providing a car. The court found in favor of the plaintiff, ordering recovery of amounts paid, interest, and transfer of car ownership. The plaintiff's fraud allegations were dismissed as they were not proven at trial.
1 Introduction
Plaintiff is a Korean national ordinarily resident in Ghana with claims of a prospective
investor. 1st defendant is a local limited liability company registered with the object of
dealing in computer hardware, mobile phones, accessories and consultancy services for
small scale businesses. 2nd defendant is one of the only two directors/shareholders in
the company.
Plaintiff claims to have invested in 1st defendant company upon reliance of
representations that 2nd defendant made to her, but which the latter has not kept faith to,
and had since not issued to her a Share Certificate as evidence of her interest in the
company. On 4 October 2014 plaintiff commenced this action by a writ of summons
against defendants jointly and severally for:
a A declaration that the 2nd defendant using the 1st defendant as a pretext to collect
the sum of US$30,000 in July for allotment of 30% and failing to allot the said
share to 1st defendant amount to defrauding on the part of the 2nd defendant.
b Recovery of the sum of US$30,000.00 being the amount collected by the 2nd
defendant ostensibly for the allotment of 30% shares in 1st defendant which was
not allotted.
c Interest on the US$30,000 at the prevailing commercial bank borrowing interest
rate effective July 2013 till date of final payment.
d Recovery of the sum of US$3,100 and GH¢16,000 being the amount plaintiff
borrowed to clear from the Tema Habour a Rexton 4 by 4 vehicle and a KIA
POTO Truck for the 2nd defendant.
e Interest on the US$3,100 and GH¢16,000.00 effective October 2013 till date of
final payment at the prevailing commercial bank borrowing interest rate.
f An order to the 2nd defendant to change the KIA SPECTRA car(s) he took from
plaintiff to make up for the additional 10% share from the 1st defendant name to
the plaintiff’s name.
g Costs.
2 Plaintiff’s case
Plaintiff’s case is structured on misrepresentation 2nd defendant allegedly made to her,
which misrepresentation convinced her to pay total amount of $30,000 for 20% shares
in his company - 1st defendant (the company). After payment of the 20% shares, plaintiff
says 2nd defendant demanded from her more money for additional 10% shares to raise
her interest in the company to 30%. Unable to pay cash for the additional 10% shares,
plaintiff claims to have given up her Kia Spectra saloon car valued at $5,000 to 2nd
defendant as consideration for the additional 10% shares in the company. The car was
register