A Federal High Court in Abuja has ordered the Corporate Affairs Commission (CAC) to restore the registration of the National Youth Council of Nigeria (NYCN) and reinstate Ambassador Sukubo Sara-Igbe Sukubo along with other members of its Board of Trustees. The court also directed that the interim management committee led by Buhari Shehu, appointed by the CAC and the Ministry of Youth Development, be immediately disbanded, declaring its constitution and continued operation unlawful.
Judgment Details
Delivering judgment on Friday, Justice Binta Nyako held that the CAC, as a regulatory agency, lacks statutory powers to determine the tenure of leaders of an organization or to constitute an Interim Management Committee for any registered association. The court emphasized that the CAC's actions exceeded its regulatory mandate.
Background of the Case
On October 6, 2025, the CAC withdrew the NYCN certificate of registration originally issued on October 28, 2020. Following this, the CAC and the Ministry of Youth Development established a nine-member Interim Management Committee led by Shehu on October 7, 2025. Sukubo, who serves as NYCN President and Secretary of the Board of Trustees, along with another individual, filed suit No. FHC/ABJ/CS/2142/2025 at the Federal High Court, challenging several constitutional and legal issues.
Legal Arguments
The plaintiffs questioned whether provisions of the Companies and Allied Matters Act (CAMA) 2020 empowering the CAC to suspend trustees, appoint interim managers, and set up administrative committees are consistent with Sections 39, 40, and 251 of the Constitution, which guarantee freedom of association and vest jurisdiction in the Federal High Court for such disputes. They also asked the court to consider whether earlier judicial decisions striking down Sections 839 and 851 of CAMA render it unlawful for the CAC to rely on them, and whether any actions taken under those provisions are unconstitutional. Additionally, they challenged the legality of decisions affecting NYCN trusteeship while an appeal is pending in a related case and described the October 7, 2025 communiqué announcing the withdrawal of registration and creation of an Interim Management Committee as null, void, and unconstitutional.
Court's Ruling
In her judgment, Justice Nyako ruled that the commission exceeded its authority when it deregistered the NYCN and set up an interim caretaker arrangement. Consequently, she nullified the deregistration and ordered the restoration of the status quo. The court directed the CAC to immediately restore the NYCN certificate, recognize Ambassador Sukubo and other duly registered trustees as the legitimate Board of Trustees leadership, and dissolve the Interim Management Committee.
Key Findings
The judge stated: "So, having disposed of all the objections, I will now look at the substantive application. Having considered the processes filed by the parties, I am of the view that the central issue is not whether the first and second defendants possess regulatory powers over incorporated trustees. The real question is whether those powers extend to the wholesale displacement of existing leadership structures." She further noted that disputes relating to trusteeship, leadership structure, and administration of the first claimant have been subject to multiple litigations before courts of competent jurisdiction. "It is trite that when the determination of issues is already before a court, an administrative body must exercise caution and restraint so as not to prejudice the proceedings."
Justice Nyako emphasized that the powers conferred on the CAC under CAMA are regulatory in nature. "The Commission may investigate. It may supervise compliance with statutory requirements. It may make inquiries into the affairs of an association. What it cannot do is assume the role of the court by effectively deciding who should govern the association while the issue remains the subject of pending litigation." She concluded that the defendants went beyond investigation by withdrawing the certificate and constituting an Interim Management Committee, which altered the status quo in a dispute already before the courts.
Order to Maintain Status Quo
The court ordered parties to maintain the position existing before the CAC's deregistration and the Ministry of Youth Development's intervention, pending the determination of the dispute currently before the Court of Appeal. "Parties are thus advised to await the outcome of the appeal. I consequently hold that while the first and second defendants possess statutory oversight powers over incorporated trustees, the withdrawal of recognition and imposition of an Interim Management Committee in the circumstances of this case were premature and cannot be sustained," she held.
