In mid-September Chief Justice Abdulai Conteh issued an explosive ruling which declared that Utilities Minister Ralph Fonseca violated the constitution when he threw out BTL's Articles of Association and cancelled the Special Share, removing Jeffrey Prosser and Bobby Lubana From BTL's Board. Conteh ruled that the original articles stand and so does the Special Share, so Lubana and Prosser have a place on BTL's Board and tonight that ruling stands.
After weeks of highly technical argument by attorneys for government, BTL and the Belize Bank, this afternoon the Court of Appeal rejected an application for a stay of that judgement. We'll tell you what it means for BTL in a bit but first we got reaction to the ruling from Elson Kaseke who filed the application on behalf of government.
Elson Kaseke, Attorney for Government
"My application was for a stay of the operational effect of the judgement of the Hon. Chief Justice and the Court of Appeal basically dismissed my application. I don't know the reasons. As you heard them say, they are going to the give the reasons during the next session of the Court of Appeal.
What the judgement of the Chief Justice says was that the directors who were appointed by the holder of the Special Share continue to be directors of BTL. There is the question of who holds the Special Share, which I think was not addressed in the judgment of the Chief Justice. So that is an issue."
Keith Swift,
So break it down, what the Chief Justice said was that Jeffrey Prosser and Bobby Lubana should have still been on the BTL Board and you guys were basically asking the Appeals Court to stay that ruling until you can appeal.
Elson Kaseke,
"No, we were asking the Court of Appeal to stay the effect of the judgement of the Chief Justice."
Keith Swift,
Which was return Jeff Prosser as Chairman of the Board.
Elson Kaseke,
"No to return Jeffrey Prosser and Bobby Lubana as directors of BTL. Yes the court refused to grant the stay which we had applied for."
Keith Swift,
So Jeffrey Prosser and Bobby Lubana belong on the BTL Board.
Elson Kaseke,
"That is the effect of the Chief Justice's judgement and the Court of Appeal said that judgement should be given effect so the answer to your question is yes, Bobby Lubana and Jeffrey Prosser, are part of the Board of Directors of BTL."
Today's ruling has far-reaching implications for the constitution of the Board and for past decisions made over the past 14 months without the properly constituted board, not to mention two annual general meetings held also without that board. Indeed, it unfolds into a virtual galaxy of corporate complexities. And while Kaseke agrees that as it stands tonight - Jeffrey Prosser and Bobby Lubana belong on BTL's Board - BTL's Attorney Rodwell Williams isn't so sure.
BTL didn't file the claim but supported Kaseke. Williams says nothing changes.
Keith Swift,
How will this ruling affect the operations of BTL?
Rodwell Williams, Attorney for BTL
"I don't think it affects the operation of the company. The company will continue to operate as it is currently doing. The decision here, from the Chief Justice, is that the legislation, the SI, was unconstitutional."
Keith Swift,
Meaning that Jeffrey Prosser should be the Chairman.
Rodwell Williams,
"Well that is your view."
And while Williams says nothing changes, in court, he presented affidavits from BTL's corporate managers detailing how effecting the judgement and resurrecting the special share would put BTL into a state of uncertainty because, "The Board may have to unravel acts that might not be capable of being unravelled." Kaseke says he will wait on the okay from government to file an appeal with the Privy Council.
