A Review of the Nigeria Deposit Insurance Corporation's Power as a Liquidator
J Onele 'A Review of the Nigeria Deposit Insurance Corporation's Power as a Liquidator' (2018) 9(2) The Gravitas Review of Business and Property Law 1-8
8 Pages Posted: 21 Dec 2015 Last revised: 21 Nov 2018
Date Written: June 1, 2018
This article considers: (a) the appropriateness of the Nigeria Deposit Insurance Corporation (NDIC) filing a petition for winding up of a failed bank in the face of an action challenging the revocation of the banking licence of a failed insured institution; (b) the authenticity of the postulation that where a failed bank is challenging the revocation of its banking licence, a petition for winding up of the bank should be stayed until the determination of the suit challenging the revocation and that any disposal of assets of a failed bank will be caught by the doctrine of lis pendens; and (c) the veracity of the proposition that once the licence of a bank is revoked, it stands revoked until the revocation is set aside by an order of court. The article posits that the NDIC can realise assets of a failed institution without having recourse to court, even in the face of a court action challenging the revocation of the licence of such failed institution, except where there is an injunction expressly restraining it from doing so.
Keywords: Failed Bank, Petition, Winding up, Nigeria Deposit Insurance Corporation
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