Edmark asks court to set aside receivership

A multi-level marketing firm, Edmark Direct Marketing Limited, has asked the Federal High Court Lagos, to set aside its ex-parte orders made on 24th May, 2022, appointing a receiver/manager over its affairs at the behest of a minority shareholder, Mr. Etim Maurice Anthony.

It made the prayer in an application filed by its lawyer and rights activist, Ebun-Olu Adegboruwa, SAN, wherein the firm alleged that the orders were granted upon misrepresentation and concealment of material facts.

Edmark, in its motion on notice filed on June 23, 2022, stated that it is owned by Mr. Sam Low Ban Chai, a Malaysian entrepreneur who developed Edmark healthy living products.

According to its counter-affidavit filed on June 29, 2022, “EDMARK” is a global or international brand owned exclusively by Chai.

The firm started in 1984 as “Ever Dynamic Marketing” (EDMARK), with the letter “D” in the colour red to represent its “perpetual dynamism” and its motto is “People helping people to succeed in health, wealth and total wellbeing”.

It said it was through Chai’s vision that Edmark became a successful brand.
It claimed that the Petitioner, Anthony, is only a beneficiary of five per cent shares allotted to him by Chai which five per cent shares had not even been paid for till date.

According to the counter-affidavit, Anthony thereafter gave express and documented mandate to Chai to be in charge of the day-to-day operations of the company.
Edmark denied allegations of fraud and siphoning of money, describing them as false and unfounded, adding that Chai legitimately transferred his 95 per cent shares and the company also appointed additional directors with valid papers filed with the Corporate Affairs Commission (CAC).

In praying the court to set aside the ex-parte order on receivership, the firm protested that it was not indebted to the Petitioner in any way, rather it had been sustaining the Petitioner through various contracts of services for which adequate commissions were paid to him as and when due.
When the matter came up before Justice Chukwujekwu Aneke on June 23, 2022, parties agreed to meet to resolve the issues in controversy between them and the case was then adjourned to June 29, 2022 for report of settlement.

On June 29, 2022 when the case came up in court, both parties requested for more time to consolidate on their settlement talks and the case was then adjourned to July 6, 2022, for further report of settlement.