Court orders CAC to restore NYCN registration, return certificate

A Federal High Court sitting in Abuja, on Friday, ordered the Corporate Affairs Commission (CAC) to restore the registration of the National Youth Council of Nigeria (NYCN) and accord it necessary rights.

The court also directed the commission to reinstate Sukubo Sara-Igbe Sukubo and other members of its Board of Trustees accordingly while declaring recognition being given to the Interim Management Committee of the Council unlawful.

Daily Trust reports that CAC had last year, precisely October 6, withdrawn the certificate of registration for the council over persistent and prolonged leadership crisis it said was about to degenerate at the time.

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The Ministry of Youth Development had said it received an official communication from the regulatory body notifying it of the withdrawal of the license earlier issued on the 28th of October, 2020.

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The CAC had argued that the move became imperative pursuant to the powers conferred on the commission under Section 8(1)(c) and 8(1)(d) of the Companies and Allied Matters Act (CAMA), 2020.

Following the development, the CAC and the Ministry of Youth Development set up a nine-member Interim Management Committee on October 7, 2025 led by one Buhari Shehu to oversee the affairs of the council.

But dissatisfied with the arrangements, Sukubo, who serves as NYCN President, Secretary of the BoT and one other plaintiff approached the court and filed a suit with No: FHC/ABJ/CS/2142/2025.

The plaintiffs sought from the court, a determination on several constitutional and legal issues which included whether provisions of the Companies and Allied Matters Act (CAMA) 2020 empowers CAC to suspend trustees, appoint interim managers, and set up administrative committees.

They also asked the court to consider whether earlier judicial decisions striking out Sections 839 and 851 of CAMA make it unlawful for the CAC to rely on them, and whether any actions taken under those provisions are therefore unconstitutional.

Similarly, they questioned the legality of any decisions affecting NYCN trusteeship while an appeal is still pending in a related case.

Delivering her judgment in the case on Friday, Justice Binta Nyako, held that the CAC, as a regulatory agency, lacks the statutory powers to determine the tenure of leaders of an organisation.

Justice Nyako also said the commission lacks power to constitute an Interim Management Committee for any registered association under its watch, adding that deregistration of NYCN was not in order.

In her judgement, the judge specifically ruled that the commission exceeded its authority when it deregistered the NYCN and subsequently set up an interim caretaker arrangement for the council.

She, however, nullified the deregistration of the NYCN and ordered the restoration of the status quo, while directing the CAC to immediately restore the NYCN certificate.

The court ordered the CAC and the Ministry to recognise Sukubo and other duly registered trustees as the legitimate BoT leadership, and dissolve the Interim Management Committee established by the commission immediately.

Justice Nyako said, “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.

“In the case of the first claimant, and in the particular circumstances of this case, the affidavit evidence before this court reveals that disputes relating to the trusteeship, leadership structure, and administration of the first claimant have been the subject of 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.

“The powers conferred on the Corporate Affairs Commission under the Companies and Allied Matters Act are regulatory in nature. The CAC undoubtedly possesses regulatory powers over incorporated trustees.

“These powers, however, cannot be exercised in a manner that effectively determines a live dispute already awaiting judicial determination.

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.

“The evidence before this court shows that the defendants went beyond investigation. They purportedly withdrew the certificate of the first claimant and proceeded to constitute an Interim Management Committee to assume control of the organization.

“However, whatever nomenclature is used, the practical consequence of that decision was to displace the existing leadership structure and install another authority in its place.

“In my view, such actions altered the status quo in a dispute that was already before the courts and had the tendency of rendering pending proceedings nugatory.”

She further stated that the law does not allow a party whether the CAC or the Ministry of Youth to achieve through administrative means, directly or indirectly, what is still pending before a court.

Justice Nyako continued, “The law does not permit a party, directly or indirectly, to achieve administratively what remains unresolved judicially. This would amount to an abuse of court process.

“However, while I decline to make general pronouncements declaring Sections 839 and 851 of the Companies and Allied Matters Act unconstitutional, the actions taken pursuant to those provisions, in the particular facts of this case, were unlawful and cannot stand.

“The court is satisfied that the intervention complained of exceeded what was reasonably necessary to achieve regulatory oversight and encroached into matters properly reserved for judicial determination.

“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.

“Parties are hereby directed to maintain the position existing before the (CAC NYCN deregistration and Ministry of Youths Development constitution of Interim Management) intervention complained of pending determination and decision of the dispute currently before the Court of Appeal, and move back to the status quo before this case, taking into consideration the pending appeal. So that is the decision of the court.”

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