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Company Law Cases In Ghana

Case

Yeboah Vs. Electricity Company Of Ghana And Others

Holding

The matter involved a dispute concerning the nature and validity of the transaction between the defendant, a government owned liability company, and Karpower.

The matter revolved around the interpretation given to the phrase “international transaction” in the article 181 of the constitution, a phrase whose effect is that the transaction demander parliamentary approval.

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The first questioned that faced the court had to do with jurisdiction. The court relied on ample case law to arrive at the position that the Supreme Court is not a clearing house to jurisdiction which otherwise belongs to other lower courts. It noted that jurisdiction could only be exercised where it is manifestly clear and obvious that the cases are deserving.

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Substantively, the court had to take into consideration the legal nature of the defendants in order to ascertain whether they were the alter ego of the parliament.

After looking into the essential transactions, the court reasoned that it was that the defendants, as juristic persons, had the capacity to enter into the transactions they entered into with the relevant institutions without seeking parliamentary as stated in article 181 (5) of the constitution.

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The court came to a conclusion that given the established interpretation of “international transaction” the nature of transaction between the first defendants and Karpowership does not constitute an international transaction with a government.

This indicates it did not require a compliance with article 181(5) of the constitution.

Verdict

The court dismissed the application.

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