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Court grants injunction barring NCB from closing Olint's accounts
Paul Henry
Wednesday, January 16, 2008
OLINT Corporation Ltd on Monday obtained an interim injunction in the Supreme Court barring the National Commercial Bank (NCB) from closing its accounts.
Olint was forced to seek the injunction after the bank informed the private investment club that it would be closing its three accounts at NCB's Hagley Park Road branch and elsewhere across the island following a ruling by the Supreme Court on Christmas Eve that the club was illegally trading in securities and as such should obtain the proper licences.
On that same day, the court also made a similar ruling against foreign exchange investment club LewFam Investment.
Olint is seeking a declaration from the court, among other things, that the bank has abused its position of dominance by threatening to close its accounts; is in breach of the Fair Competition Act, as it has refused and threatened to refuse supplying banking service; that the bank intended to injure the club, as it acted unlawfully, or otherwise, in a manner that interfered with the claimant's business by reason of which the claimant has suffered loss and damage and stands to suffer injury to its reputation; and that by threatening to close the accounts, NCB is doing so for an improper purpose, knowing that by doing so it would be interfering with, and/or disrupt the claimant's contract to provide services to its club members.
The Financial Services Commission (FSC) had, in March 2006, served Olint and LewFam with cease and desist orders after lengthy investigations, which it said revealed that the clubs were operating contrary to the Securities Act. The FSC's investigations also included a raid on both clubs' offices and the confiscation of documents.
The injunction obtained by Olint expires on January 25, a day after both parties are due in court to argue the matter.
Paul Henry
Wednesday, January 16, 2008
OLINT Corporation Ltd on Monday obtained an interim injunction in the Supreme Court barring the National Commercial Bank (NCB) from closing its accounts.
Olint was forced to seek the injunction after the bank informed the private investment club that it would be closing its three accounts at NCB's Hagley Park Road branch and elsewhere across the island following a ruling by the Supreme Court on Christmas Eve that the club was illegally trading in securities and as such should obtain the proper licences.
On that same day, the court also made a similar ruling against foreign exchange investment club LewFam Investment.
Olint is seeking a declaration from the court, among other things, that the bank has abused its position of dominance by threatening to close its accounts; is in breach of the Fair Competition Act, as it has refused and threatened to refuse supplying banking service; that the bank intended to injure the club, as it acted unlawfully, or otherwise, in a manner that interfered with the claimant's business by reason of which the claimant has suffered loss and damage and stands to suffer injury to its reputation; and that by threatening to close the accounts, NCB is doing so for an improper purpose, knowing that by doing so it would be interfering with, and/or disrupt the claimant's contract to provide services to its club members.
The Financial Services Commission (FSC) had, in March 2006, served Olint and LewFam with cease and desist orders after lengthy investigations, which it said revealed that the clubs were operating contrary to the Securities Act. The FSC's investigations also included a raid on both clubs' offices and the confiscation of documents.
The injunction obtained by Olint expires on January 25, a day after both parties are due in court to argue the matter.
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