A Federal High Court in Abuja has voided the decision of the Corporate Affairs Commission (CAC) to withdraw the registration of the National Youth Council of Nigeria (NYCN) and the constitution of an interim management committee to run the affairs of the group.

Justice Binta Nyako, in a judgment, held that the CAC wrongly applied its powers by withdrawing the group’s registration and altering its leadership when disputes over those issues were subjects of pending cases in appellate courts.

The judgment was on a suit, marked: FHC/ABJ/CS/2142/2025 filed by by the Incorporated Trustees of the NYCN and Ambassador Sukubo Sara-Igbe Sukubo, who serves as the group’s President and Secretary of the Board of Trustees (BoT).

Defendants in the suit are the Registrar-General of the CAC (RG-CAC), the CAC, the Minister of Youth Development, and the Federal Ministry of Youth Development.

Justice Nyako, in the judgment delivered on June 5 a certified true copy (CTC) of which was seen on Monday, overruled the objection raised by the defendants against the competence of the suit and held that the steps taken by the defendants were unlawful.

The judge said: “Having considered the processes filed by the parties, I am of the view that the central issue is not whether the first and second defendants (the RG-CAC and CAC) possess regulatory powers over incorporated trustees because they undoubtedly do. 

“The real question is whether those powers extend to the wholesale displacement of the existing leadership of the first claimant (NYCN) in the peculiar circumstances of this case.

“The affidavit evidence before this court reveals that disputes relating to the trusteeship, leadership structure and administration of the first claimant have been the subject of multiple litigations before courts of competent jurisdiction. 

“It is trite that where the determination of rights is already before a court, an administrative body must exercise caution so as not to assume the role of the court,” the judge said.

She held that the powers conferred on the CAC under the Companies and Allied Matters Act are regulatory in nature, adding that the CAC undoubtedly possesses regulatory powers over incorporated trustees. 

The judge however, held that those powers cannot be exercised in a manner that effectively determines a live dispute already awaiting judicial determination.

Justice Nyako added: “The commission may investigate, it may supervise compliance with statutory requirements. It may make inquiries into the affairs of an association. 

“What it cannot do is assume the role of the court by effectively deciding who should govern the association while the issue remains the subject of pending litigation.

“The evidence before this court shows that the defendants went beyond investigation. They purportedly withdrew the certificate of the first claimant and proceeded to constitute an interim management committee to assume control of the organization. 

“Whatever nomenclature is used, the practical consequence of that decision was to displace the existing leadership structure and install another authority in its place. 

“In my view, such action was premature. It altered the status quo in a dispute that was already before the courts and had the tendency of rendering pending proceedings nugatory. 

“The law does not permit a party, directly or indirectly to achieve administratively what remains unresolved judicially. 

“However, while I decline to make general pronouncement declaring s. 839 and 851 of the Companies and Allied Matters Act unconstitutional, the actions taken pursuant to those provisions in the peculiar facts of this case were unlawful and cannot stand.

“The court is satisfied that the intervention complained of exceeded what was reasonably necessary to achieve regulatory oversight and encroached into matters properly reserved for judicial determination. Parties are thus advised to await the outcome of the appeal

“I consequently hold that, while the first and second defendants possess statutory oversight powers over incorporated trustees, the withdrawal of recognition and the constitution of an interim management committee in the circumstances of this case were premature and cannot be sustained. 

“Parties are hereby directed to maintain the position existing before the intervention complained of, pending the determination of the disputes currently before the appellate courts.”

Source: The Nation News