Aubyn Hill named in lawsuit demanding $10m buyback of shares

Vivian Monteith, who describes himself as a retired diplomat, has filed a lawsuit in the Supreme Court against Nation Growth Micro Finance Limited, of which he is a minority shareholder, alleging financial loss and oppression by the defendant company and its directors.

Monteith contends in the suit, which was filed on July 18 that he has suffered loss and damage and is being oppressed by the defendant and its directors who constitute the board. He referred to the way the businesses or affairs of the company have been carried on and stated further that the powers of the directors has been exercised in a manner that is oppressive to him.

Monteith is seeking remedies and relief under the Companies Act and other reliefs.

He said in his affidavit that it was Aubyn Hill, founder of the company (now Senator Aubyn Hill, minister of industry, investment and comnerce) who “influenced and inveigled” him in 2007 to invest in the company, and in 2008, he purchased five million ordinary shares for $1 each, which amounted to $5 million.

He is asking the court to direct that the company convene an annual general meeting and for him to be given notice of all general meetings.

The other orders being sought are for the company to furnish him and the court with its financial statements for all the years he has been a shareholder; the company to furnish him with a statement of all dividends paid since he acquired shares in it; and the company to furnish him and the court with statements for all sums or other benefits paid to each director since he has been a shareholder in the company.

“That having regard to my effective exclusion from the company that the company repurchase his shares for $10,000,000,” Monteith also asked the court to order.

Monteith, in his affidavit of support, states that the company was incorporated to provide micro financing services and investments.

He stated that the founder, first chairman and executive director of the company was Aubyn Hill. He said that in or about 2007, he was influenced to invest and acquire shares in the company by Hill, who was also the main promoter of the company.

As a consequence of Hill’s importunations, he decided to invest in the company by purchasing the five million ordinary shares and was issued a share certificate in October 2008 in the names of his wife and himself.

Monteith stated that since he acquired the shares, there has only been to one annual general meeting and that he has never received any decisions taken at board meetings or any annual reports. He said he had never received any dividends and had no idea of the current value of his shares or the financial status of the company.

Despite several written demands over the years, he has not been able to ascertain the financial status of the company. He said he engaged the services of attorney-at-law Courtney Kazembe, who wrote to the company in May last year demanding his $5 million with interest, but the company responded, refusing the request. He said another letter was sent to the company’s lawyers in June last year, and despite two mediation attempts, the matter has not been resolved.

Monteith said in his affidavit that Hill, a former managing director of the company, told him in response to his request for financial information about the company that it was classified information.

The suit was filed by the law firm Lyn-Cook, Golding & Company. The defendant company has not yet filed a defence to the suit.