A bitter corporate battle between Chinese business partners over Crown Ceramics Nigeria Limited has intensified, involving court cases, petitions, and regulatory interventions. The dispute exposes one of the most contentious shareholder disputes involving a foreign-owned manufacturing company in Nigeria. Court documents and petitions reveal that majority shareholders, who collectively own 65% of the company, and minority shareholder Chen Dongfeng, who holds about 8% equity, are in disagreement.
The majority shareholders, including Zhang Kefeng, Zhang Linshuang, Liu Zhengyu, and Liao Yuzhen, allege that since March 2025, they have been denied access to the company's factory, financial records, bank accounts, and corporate decision-making. Despite being the controlling shareholders, they claim that repeated requests to inspect company accounts, review operational reports, hold board meetings, conduct audits, and receive profit distributions have been ignored or obstructed.
Chen Dongfeng, the Managing Director of Crown Ceramics, allegedly exercises exclusive control over the company's finances, banking arrangements, factory operations, and corporate records. The dispute has reached the Federal High Court in Abeokuta, Lagos, and Abuja, with the majority shareholders filing Suit No. FHC/AB/CS/64/2025 against Mr. Dongfeng. They sought orders preventing banks from honouring transactions initiated by him after the company's board passed a resolution directing financial institutions to deny him access to company funds.
Mr. Dongfeng instituted another suit in Lagos involving similar issues regarding the management and control of the company. The law firm engaged by the majority shareholders, Aliyu & Musa (SAN), initially advised an internal resolution through a board meeting. The company convened a board meeting aimed at resolving the dispute internally, including consideration of Mr. Dongfeng's removal as a director. However, a court action was filed in Abeokuta seeking to restrain the board from removing Mr. Dongfeng.
Mr. Dongfeng asked the court to invalidate a meeting purportedly held on 1 March 2025, arguing that he was not served the statutory notice required by law. In his counterclaim, he asked the court to declare that, as a recognised member and director of the Company, he was legally entitled to receive notice of all general and board meetings of the company. The court battles have continued, with various parties seeking different reliefs.
The dispute has taken a criminal dimension, with the majority shareholders accusing Mr. Dongfeng and others of diversion and misappropriation of company funds, fraudulent transactions, concealment of corporate records, and related economic crimes. They alleged that approximately N40 billion may have been diverted, withdrawn, transferred, or otherwise misappropriated since March 2025. The petition, submitted to the EFCC on 10 July, details various alleged transactions, including diversion of company sales revenue to personal accounts or related companies.
Despite court orders and police interventions, the majority shareholders claim they remain excluded from effective control of the company. Their lawyer, Sanusi Musa, alleged that some police officers are "conniving with the minority shareholder to prevent the majority shareholders from accessing the factory." The Vice President, Kashim Shettima, has directed the police to intervene in the matter, but the directive has not been adhered to. The majority shareholders' lawyer described them as "helpless as of now."
Key points
- The dispute involves allegations of corporate fraud and financial misappropriation.
- The case has been ongoing in multiple courts in Nigeria, including Abeokuta, Lagos, and Abuja.
- The majority shareholders claim they have been denied access to company records and decision-making processes.
