Latest update December 25th, 2024 1:10 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

High Court discharges injunction against Guyana Stockfeeds

Apr 16, 2009 News

The High Court yesterday discharged an Interim Injunction obtained by NICIL (National Industrial and Commercial Investments Limited) against Guyana Stockfeeds Inc. That injunction was granted on April 6, last.

NICIL had moved to the Court, ex-parte, through an affidavit sworn to by its Chairman Winston Brassington and had obtained an interim injunction preventing Guyana Stockfeeds Inc. (GSI) from paying a dividend previously approved at its Annual General Meeting for 2007, or any other dividend.
The injunction had also prevented GSI from making further acquisitions and investments with its subsidiaries or other companies in which the majority shareholder and Chairman of GSI, Robert Badal, has a major interest.

Guyana Stockfeeds yesterday also similarly moved to the Court ex-parte to discharge the injunctions against it on the basis that the affidavit sworn on behalf of NICIL had failed to disclose several material matters to the Court at the time NICIL had made its application.
The affidavit sworn to by Guyana Stockfeeds stated that NICIL had misled the court on several issues, claiming that payment of the dividend approved by the 2007 meeting was imminent, when in fact it had already been paid.

The company claimed that NICIL also misled the court by saying that related party transactions with another company in Trinidad were unclear and unexplained, and that Badal was stripping the company of its cash by these transactions, when the rationale for these transactions had been fully explained in the notes to the company’s audited accounts for the past two years which had been approved by the shareholders at annual meetings which NICIL knew of.

It was also claimed that Badal had forced Guyana Stockfeeds to buy two companies in which he held the majority interest at disadvantageous prices, while in fact, in one of them, the deal was a highly profitable one which had already repaid half its purchase price in two years (Popeye’s fast food franchise).
“On the other, Badal had never owned the company whose assets had been purchased; in fact, it was NICIL which had arranged the sale of these assets to Guyana Stockfeeds several years previously.”

The court was of the view that these were serious material non-disclosures, and discharged the injunctions it had previously granted, upon Guyana Stockfeeds giving an undertaking not to make any bonus issues of shares pending the hearing and determination of an appeal relating to this issue or a further order of the court.
Guyana Stockfeeds was represented by Mr. Robin M.S. Stoby, S.C. and NICIL by Mr. Ashton Chase, S.C.

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

The wait is over, all roads lead to KMTC for their Grand Boxing Day Horse race meet

The wait is over, all roads lead to KMTC for their Grand Boxing Day...

Dec 25, 2024

Over 70 entries in as $7M in prizes at stake  By Samuel Whyte Kaieteur Sports- The time has come and the wait is over and its gallop time as the biggest event for the year-end season is set for the...
Read More
Xhiya Hercules – flipping the script towards Gymnastics history for Guyana

Xhiya Hercules – flipping the script towards...

Dec 25, 2024

Road Warriors, Bent Street, Team Cruel & Gold Is Money into quarter-finals

Road Warriors, Bent Street, Team Cruel &...

Dec 25, 2024

Deol maiden hundred outshines Matthews’ as India take series

Deol maiden hundred outshines Matthews’ as...

Dec 25, 2024

Moraikobai village two days football competition and fun day set for Old and New Year’s Day

Moraikobai village two days football competition...

Dec 25, 2024

BCB thanks cricket fraternity for strong support in 2024

BCB thanks cricket fraternity for strong support...

Dec 25, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]