The respondent was a shareholder, Director and Chairman of the 3rd defendant/appellant. 1st appellant wrote a letter directing the respondent to effect some changes to the shareholding and structure of the Board of Directors. Some of the directives affected the respondent's personal shareholding in the 3rd appellant and he felt aggrieved and thus filed a suit in the Federal High Court, Lagos Division, challenging the directives.

Initially the suit related to only the 1st, 2nd and 3rd appellants but the 4th to 8th appellants applied to be joined as co-defendants and were accordingly joined. The 4th to 8th appellants then filed challenging the locus standi of the plaintiff to institute the suit and consequently the jurisdiction of the court to entertain the action. The objection was overruled by the learned trial Judge. Being dissatisfied with the ruling, the appellants filed the present appeal.