‘CAC Lacks Power To Register Trade Union Bodies’ -Court

The Port-Harcourt division of the National Industrial Court of Nigeria (NICN) has declared that the Corporate Affairs Commission (CAC) is not empowered by extant laws to register organizations under Incorporated Trustee which has aims and objectives of a Trade Union. 

Justice Nelson Ogbuanya, who presided over the court made the declaration while delivering judgment in a suit filed by the Maritime Workers Union of Nigeria (MWUN) against the Incorporated Trustees of Freight Forwarders Transport Association, it’s Trustees and the Corporate Affairs Commission (CAC), in a suit numbered NICN/PHC/48/2022.

In his judgment, Justice Ogbuanya held that neither the CAC nor the Trade Union Registrar while carrying on statutory function under the enabling law- Companies & Allied Matters Commission or Trade Unions Act, can register an organization not falling appropriately under its statutory mandate. Adding that the CAC does not have the legal power to accept and register organization as Incorporated Trustee, which by its disclosed aims & objective, is a disguised trade union, designed to carry out trade union activities, particularly conflicting with an existing trade union, as in the instant suit.  

The Claimant’a case before the court was that the Maritime Workers Union of Nigeria had submitted that some of its members led by the sixth defendant broke away from it and went ahead to register another Association with the CAC which issued it a Certificate of Incorporation in its name, Incorporated Trustees of Freight Forwarders Transport Association, which aims & objectives are in conflict with its trade union activities, such as demanding check-off dues and tickets at Onne Port and on the highways, as well as invasion of the Maritime Union’s office, which caused fracas among the rival members at the port.

However, the defendants, the Incorporated Trustees of Freight Forwarders Transport Association and others insisted that their association having been lawfully registered by the CAC, it can carry out its aims & objectives.

The defendants therefore asked the court to dismiss the claimants’ suit, apart from challenging the court’s jurisdiction, as it claimed that the dispute falls outside the jurisdiction of the court.    

But Justice Ogbuanya, in a well-considered Judgment, dismissed the defendants’ objection challenging its jurisdiction as grossly misconceived. 

The Court held that Section 45 of the Trade Union Act stipulates that the Companies and Allied Matters Act shall not apply to any trade union, and registration of any such body under that Act shall be void.

Justice Ogbuanya also stated that the membership of the defendants’ Association which includes: truck drivers, truck owners or transport agents within Nigeria and operating at the Nigerian ports, and its principal objectives, which is to ensure at all times the preservation of rights, claims, benefits and obligations of all members of the Association rather portray it as a trade union, which is basically a workplace labour-welfare-oriented organization, recognized and registered by the Trade Union Registrar pursuant to the Trade Unions Act.

The Court held the view that the Association with such membership and aims & objectives ought not to have been accepted for registration by the CAC.

Justice Ogbuanya held that the 1st Defendant Association does not ordinarily qualify for registration as an Incorporated Trustee, in view of the combined provisions of Ss.823 (1) and S.825 (1) (b) CAMA 2020 on criteria for membership and scope of operation of Incorporated Trustees, coupled with its evidenced modus operandi indicating its activities conflicting with the operational area of the Claimant, a registered trade union.

The court declared that given the legal regime for registration and operation of an organization registerable under the Companies & Allied Matters Act and the Trade Union Act, the Certificate of Incorporation issued by the Corporate Affairs Commission for registration of the 1st Defendant as an Incorporated Trustee does not in any manner whatsoever entitle the 1st Defendant and its members to perform the duties and activities of the Claimant trade union or any other Trade Union whatsoever. 

The Court consequently awarded N10 million as general damages against the defendant union for its members’ unlawful invasion of the claimant union’s office, and N1 million cost in favour of the Claimant.