Attorneys for Caroline St. George on Monday filed a writ in the Supreme Court Registry in Freeport suing the Port Group Limited and claiming that the entity is unlawfully holding assets that are rightfully hers.
Ms. St. Georgeﾒs attorneys believe those assets could value in the hundreds of millions of dollars.
Ms. St. George is the daughter of Edward St. George, the late major shareholder of the Grand Bahama Port Authority, whose death in 2004 triggered dramatic changes at the company which manages the City of Freeport.
The writ explains that Ms. St. George was the 50 percent owner of a Bahamas-incorporated company called, Carrick Limited, which owned commercial property.
It says that on or about May 11, 1992, Ms. St. George executed a deed of power of attorney constituting her father, the late Mr. St. George, her attorney in respect of the affairs of Carrick Limited.
It adds that Mr. St. George was the beneficial owner of 50 percent of the issued share capital of another company called Intercontinental Diversified Corp., which owned all of the issued share capital of the Port Group Limited.
Mr. St. George and his partner Sir Jack Hayward ﾖ neither of whom was a Bahamian citizen ﾖ were beneficial owners of Intercontinental.
The writ says that on October 19, 2000, Mr. St. George and Sir Jack "unlawfully caused the entirety of the issued share capital of Carrick Limited" to be transferred to the Port Group Limited "without paying any consideration to" Ms. St. George.
The transfer of Ms. St. Georgeﾒs shares was effected in breach of the International Persons Landholding Act 1993 or alternatively in breach of the Immovable Property Act 1982, the writ says.
"The said transfer of [Ms. St. Georgeﾒs shares] was effected without any permit or approval of the National Economic Council of the Government of The Bahamas," the writ says.
It further alleges that the transfer of the shares was effected without any permit or approval of the Central Bank of The Bahamas or any other government agency, and without Ms. St. Georgeﾒs knowledge.
Additionally, the writ says the transfer of those shares was effected to Ms. St. Georgeﾒs detriment and disadvantage and to the benefit and advantage of her agent and father the late Edward St. George.
"The said transfer of the plaintiffﾒs shares was in the premises effected in breach of the fiduciary duties owed by the late Edward St. George to the plaintiff. The said transfer of the plaintiffﾒs shares was in the premises effected by undue influence," the writ adds.
"The said transfer of the plaintiffﾒs shares was effected in the matter hereinbefore set out to the actual or constructive knowledge of Sir Jack Arnold Hayward and the [Port Group Limited]."
The writ says Sir Jack Hayward and the late Edward St. George were at all material times directors of the Port Group Limited.
It adds that by the reason of the matters set out, the Port Group Limited Group has at all material times been a constructive trustee of 50 percent of the issued share capital of Carrick Limited for Ms. St. Georgeﾒs benefit.
In the writ, Ms. St. George is seeking a declaration that the Port Group Limited holds 50 percent of the issued share capital of Carrick Limited upon a constructive trust or alternatively a resulting trust.
She is seeking an account and enquiry as to the monies and other assets derived from Carrick Limited by the Port Group Limited.
Additionally, the writ is asking for an order that the Port Group Limited pay Ms. St. George monies due as a result of the transferred share capital, including interest.
The lawsuit is the latest in a series of maneuvers and developments that have placed the spotlight on the Grand Bahama Port Authority.
Several weeks ago, it was revealed that Mr. St. Georgeﾒs ex-wife, Mary St. George, had laid claim to half his assets.
But Caroline St. George's attorney, Damian Gomez, had said that she wanted to protect her interests and that of her children, as many of her assets were co-mingled with those of her fatherﾒs.
Mary St. George, Edward's second wife, has claimed to be a 25 percent shareholder of the Port Authority, according to reports.
Caroline, a daughter from his first marriage, told Freeport police recently that Sir Jack had threatened her and she feared for her life, but this is a claim Sir Jack quickly denied.
Caroline St. George also wants new Port Authority Chairman Hannes Babak to be fired, claiming that he is poised to unfairly benefit from the companyﾒs profits, but this was not a claim stated in the lawsuit filed on Monday.
Recently, Sir Jack issued a statement threatening to take legal action of his own if Caroline and Mary St. George or their agents continued to make statements he deemed damaging to the reputation of the Port Authority.
By: Candia Dames, The Bahama Journal
