Court shuts down Q-Net
The Attorney General, Godfred Yeboah Dame, had asked an Accra High Court to dissolve Q-net Investment Limited after it operated something resembling a ponzi scam and conned unwary clients.
In accordance with Sections 84(2)(d) and (e) of the Corporate Insolvency and Restructuring Act (Act 1015), the Attorney General (AG) has filed a court petition to wind up Q-net for participating in illegal activities outside of what it was authorized to do.
The AG requested three reliefs, including an order for the company’s official dissolution and an order prohibiting its members, directors, and officers from acting in a manner that would interfere with the company’s stated activity as set forth in its certificate of formation.
In his petition before the court, Mr. Dame contended that Q-net was being run for criminal and illegal reasons or conducting business that was not permitted by its constitution and against the interests of the country.
Q-net was registered for the primary business of mining, oil and gas, real estate development, farming, transport services, building construction, import and export services, and civil engineering, according to court papers cited in the AG’s petition.
The AG claims that Q-net is a member of a network of an international marketing firm controlled by Quest International, or QI Group, with its headquarters in Hong Kong and offices in Ivory Coast, Nigeria, Mali, and Ghana for its operations in West Africa. According to reports, Togolese, Ivoirians, Nigerians, Burkinabes, and Malians predominate in their Ghanaian branch.
In his petition, the AG claimed that the Bolgatanga Municipality was home to hundreds of victims of Q-dishonest net’s and illegal activities. Community leaders, including traditional rulers, also expressed concern about the security threat that Q-operations net’s posed to their communities.
According to the Attorney General, Q-net was widely used for criminal and illegal purposes that were contrary to the company’s stated incorporation purpose and severely undermined its standing in Ghanaian communities. This posed a direct security threat to the peace, economic stability, and social stability of some areas of the nation, necessitating the AG’s action to wind it up in order to safeguard the country’s interests.
The company did not enter an appearance, and the AG presented the court with the corroborating statements of two witnesses who testified about the disastrous effects of Q-activities net’s in the Upper West Region, where it had promised them jobs in the oil and mining industries that never materialized and had succeeded in doing so by extorting amounts of money ranging from GH5,000 to GH15,000 from them.
After considering the facts of the petition, the court, presided over by Justice Jennifer Dadzie, determined that the funds obtained by Q-net Investment Limited through its operations represent the proceeds of crime. It also determined that the company’s failure to explain the nature of its operations and what it was doing with the funds, other than laundering the funds, is indicative of the commission of a crime.
“Where formed companies are engines of criminality, their continued existence must be arrested promptly since they have terribly strayed from what they were founded to do. To halt this illegal activity, winding up is required. The court found that the petitioner’s request to dissolve the respondent (Q-net Investment Ltd) was granted.
The court also stated, “It is now ordered that the respondent, Q-net Investment Limited be and is hereby wound-up.”
Justice Dadzie further ordered that the Q-net Investment Limited’s members, directors, and officers be prohibited from using any of the powers that are typically granted to them by the Companies Act 1993, Act 179, the law that was in effect at the time the company was formed and that was disclosed on the documents of incorporation.