Legal Dispute Arises Over CAC’s Appointment Of Interim Managers At Kaduna Foundation

A legal dispute has arisen at the Federal High Court over the Corporate Affairs Commission’s (CAC) decision to suspend the board of trustees of the Al-Manar Education and Development Foundation and appoint interim managers to oversee the organisation.

The suit follows actions taken by the CAC in relation to the management of the foundation, which is registered as an incorporated religious trust.

According to court documents, the CAC issued a directive in September 2025 announcing the suspension of the trustees of the foundation and replacing them with interim managers selected by the commission.

The trustees are contesting the action, arguing that the suspension was carried out without prior notice or an opportunity for them to be heard, and that their tenure had not expired at the time the intervention was made.

In the suit, the claimants contend that the CAC acted beyond the scope of its statutory powers and in breach of the principles of fair hearing. They are asking the court to determine whether the commission has the authority to suspend trustees and appoint interim managers without first obtaining a court order.

The court filings also raise concerns about subsequent administrative steps taken following the suspension, including correspondence with financial institutions regarding changes in the management of the foundation’s affairs. The claimants argue that such actions should be subject to judicial oversight.

Legal practitioners monitoring the proceedings say the case raises important questions about the limits of regulatory authority over incorporated trustees, particularly religious and charitable organisations.

“The issue before the court is the extent of the CAC’s supervisory powers and the procedure required to exercise those powers,” a lawyer familiar with the matter said.

The trustees further argue that members of the foundation’s community were neither consulted nor formally notified before the changes were implemented, a development they say disrupted the organisation’s internal governance.

At the time of reporting, the CAC, which is named as a respondent in the suit, had not filed a detailed response to the claims contained in the court documents.

Observers note that the case could have wider implications for how regulatory agencies intervene in the affairs of non-profit and religious bodies, particularly where disputes arise over governance and compliance.

The Federal High Court is expected to determine whether the CAC’s actions were lawful and what remedies, if any, are available to the parties as proceedings continue.