NATIONAL COMMUNICATION AUTHORITY VS CROSSOVER TELECOMMUNICATIONS LTD. & ORS
November 1, 2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JANE HARRIET AKWELEY QUAYE (MRS.)
Areas of Law
- Civil Procedure
- Corporate Law
November 1, 2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
Justice Jane Harriet Akweley Quaye of the Ghana High Court heard an interlocutory application by the 2nd and 3rd Defendants seeking to be struck out from the suit as misjoined parties. The Applicants argued that, relying on Salomon v. Salomon and Morkor v. Kumah, they were not necessary parties under Order 4 Rule 5(b), and the matter did not fall within exceptions that allow piercing the corporate veil. The Plaintiff/Respondent opposed, asserting that the case fit the exceptions. Referring to the Court’s stance in National Communications Authority v. Telstar Communications Limited & 3 ors., the Court reasoned that where public policy and justice concerns are raised and company policies are implicated, the corporate veil may be lifted and such defendants are necessary parties. The Court refused the misjoinder application and adjourned the case.
The Court has heard arguments by both Counsel for and against an application for an order to strike out the 2nd & 3rd Defendants as parties to this suit. It is trite that the conditions for determining applications under Order 4 Rule 5(b) is whether or not the said Defendants are necessary parties to the suit. It is also trite that when it comes to actions against companies, the principle that a company must be treated as a separate legal person from its Directors should be borne in mind. Counsel for the Applicants has based his argument on the principle in Salomon v. Salomon and Morkor v. Kumah and argued that this case does not fall under the exceptions provided under Morkor v Kumah. Counsel for the Plaintiff/Respondent has argued otherwise that this case falls on all fours and the exemptions provided by Morkor v. Kumah. This Court will not belabor the point because it has already under similar facts in the case of National Communications Authority (NCA) v Telstar Communications Limited & 3 ors., being of the considered opinion that where public policy considerations and concerns of justice has been raised, it cannot close its eyes and allow Defendants to be misjoined. Where company policies are raised, the Defendants become necessary parties as the veil of incorporations has to be lifted for a better determination to be made as to whether or not they should be made accountable. Application for misjoinder is refused. The case is adjourned to 7th November, 2022 at 9:00 a.m.
(SGD.)
H/L JANE HARRIET AKWELEY QUAYE (MRS.)
R.A. JUSTICE OF THE HIGH COURT