By Innocent Anaba
A Lagos High Court,day, referred to arbitration panel for resolution, a suit filed by a firm, AdonaiNet Nigeria Limited, against Nigerian Stock Exchange, NSE, and others over alleged breach of contractual agreement.
AdonaiNet, owners and operators of Trade Alert, an investors’ protection mechanism, is challenging NSE’s management under Emmanuel Ikazoboh, its interim administrator for stopping the remittance of its commission on trading activities on the stock exchange and the Central Securities Clearing System Limited, CSCS, since December 2010, running into about N210 million by the end of this month.
At the hearing of the matter, Wednesday, counsel to SEC prayed the court to refer the matter to arbitration, which the trial judge in the matter, Justice Ayotunde Philips obliged, as AdonaiNet did not oppose the application.
Efforts by the plaintiff to have the court restrain NSE from enforcing the termination of the contract pending the decision of the arbitration panel on the issue was opposed by the Exchange, which argued that granting such order would amount to an advance judgment, an argument that was upheld by the court.
AdonaiNet, whose operation was approved by the Securities and Exchange Commission, SEC, six years ago as an investor protection scheme, along with the electronic bonus, biometrics and e_IPOs (Initial Public Offerings), had also filed a contempt proceedings before the court, following alleged failure of the defendants to maintain the status quo as ordered by the court when the case came up last December.
It was also gathered that according to the original agreement signed in 2005, AdonaiNet has exclusive right to Trade Alert services for 25 years, besides the fact that the scheme cannot be terminated before an initial period of 15 years and upon certain prevalent situations.
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