The Commercial Division of the Accra High Court has dismissed a suit against the Bank of Ghana and Securities and Exchange Commission by MENZGOLD for stopping its operations.
Lawyers of the bank and the commission raised preliminary objections on the grounds that MENZGOLD did not exhaust all internal mechanisms in addressing its concern.
They therefore prayed the court to dismiss the suit.
The court presided over by Justice Akua Sarpomaa Amoah accordingly dismissed the case.
MENZGOLD in September last year filed a suit against the two institutions that the order to stop its operations has harmed its reputation as a firm.
The suit averred that the Securities and Exchange Commission’s decision to shut down the business of Menzgold was, “premature, hasty, arbitrary and clearly intended to affect its accrued rights and customers in a prejudicial manner.”
The company was therefore seeking a declaration that the order by the Commission constitutes an abuse of its discretionary powers and, “is arbitrary, capricious and contrary to Articles 23 and 296 of the 1992 Constitution.”
Menzgold therefore prayed the court to set aside the Commission’s orders which have prohibited it from trading in gold collectibles and undertaking any new business related to its gold vault market.