Chinese Partners Fight for Control of Nigerian Company

A fierce fight between Chinese partners over who controls Crown Ceramics Nigeria Limited has turned into a series of court cases, petitions, and regulatory actions. This situation shows one of the most heated shareholder disputes involving a foreign-owned factory in Nigeria.

Documents and petitions seen by PREMIUM TIMES reveal that this fight has gone through courts in Abeokuta, Lagos, and Abuja. It has also involved the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), the Corporate Affairs Commission (CAC), and the Office of the Vice President.

The main players in this dispute are majority shareholders who own 65 percent of the company. They are up against a minority shareholder, Chen Dongfeng. The majority shareholders claim he has about eight percent equity but has taken control of the business.

Since March 2025, the majority shareholders say they have not been allowed to access the company’s factory, financial records, bank accounts, or take part in decisions, even though they are the major shareholders.

They claim their requests to see company accounts, check operational reports, hold board meetings, conduct audits, and receive profit distributions have been ignored or blocked.

The shareholders also say they have been kept out of the company’s management while Mr. Dongfeng is said to have full control over the finances, banking, factory operations, and company records.

Mr. Dongfeng is the Managing Director of Crown Ceramics. This dispute began in 2025 when the majority shareholders, Zhang Kefeng, Zhang Linshuang, Liu Zhengyu, and Liao Yuzhen, filed Suit No. FHC/AB/CS/64/2025. They claimed that Mr. Dongfeng took physical control of the company as a minority shareholder.

They sought to stop banks from honoring any transactions started by him after the company’s board decided that banks should deny him access to their funds.

While that case was ongoing, Mr. Dongfeng filed another suit in Lagos on similar matters about the company’s management and control.

Aliyu & Musa (SAN), the law firm for the majority shareholders, first suggested solving the issue in a board meeting. The company held a board meeting to resolve the dispute, including talking about Mr. Dongfeng’s possible removal as a director.

It is not clear if that meeting took place, but a court action was filed in Abeokuta to stop the board from removing Mr. Dongfeng. Documents show that Mr. Dongfeng asked the court to cancel a meeting that supposedly took place on March 1, 2025. He argued that he did not get the legal notice needed by law.

In his counterclaim in the Federal High Court in Abeokuta, Mr. Dongfeng requested the court to confirm that, as a recognized member and director of the company, he should receive notice for all meetings.

He also asked the court to declare that not being served notice for the March 1, 2025 meeting violated Sections 243 and 245 of the Companies and Allied Matters Act (CAMA) 2020, as amended. Mr. Dongfeng said the notice should include the meeting’s date, place, agenda, and all documents required for participants.

He wants the court to invalidate the meeting on March 1, 2025, claiming it was held without the proper notice. He also seeks a permanent order to stop the majority shareholders from acting on any resolutions from that meeting.

Mr. Dongfeng wants the court to further stop the majority shareholders from sending notices for future meetings unless those notices are properly served to him.

The majority shareholders say that despite all the court actions, no court has stopped them from accessing the company or being involved in its management.

In April 2026, the High Court of the Federal Capital Territory in Abuja issued an interim order that banned anyone from preventing them from accessing the company. The court also ordered the Inspector-General of Police to provide security for this order.

The Police Directorate of Legal Services later recommended that the Ogun State Commissioner of Police should send officers to enforce the court order. Even with this, the majority shareholders say they are still kept from effectively controlling the company.

Their lawyer, Sanusi Musa, told PREMIUM TIMES that some police officers are "conniving with the minority shareholder to prevent the majority shareholders from accessing the factory. The presence of police is stopping them from accessing the facility."

Mr. Musa also mentioned that Vice President Kashim Shettima, as Chairman of the Presidential Enabling Business Environment Council (PEBEC), has instructed the police to get involved, but that instruction has not been followed.

"The majority shareholders are helpless as of now," Mr. Musa said. Mr. Dongfeng’s lawyer, Emeka Ekweozor, responded that the issues are "sub judice," meaning they should be handled by the court, not the media.

The fight has also taken a criminal turn. In a petition to the EFCC on July 10, the majority shareholders accused Mr. Dongfeng and others of misusing company funds, fraud, and hiding corporate records.

They claim around N40 billion could have been misappropriated since March 2025. Their allegations include diverting company sales to personal accounts, false procurement deals, inflated labor costs, unsupported invoices, and large cash withdrawals without approval.

The shareholders say they have not received any dividends or profit distributions, even though the company is still operating. They want the EFCC to investigate, look into the financial records, and recover any misused funds.

PREMIUM TIMES could not verify these claims independently, and Mr. Dongfeng’s lawyers strongly deny all allegations. Mr. Ekweozor stated, "My Client categorically denies all allegations of diversion, misappropriation, fraudulent transactions, concealment of corporate records, or any other economic offences alleged against him. The allegations are false, unsubstantiated and are expressly denied."

The dispute also affects several employees. In a separate petition to the Inspector-General of Police, the company claimed that five employees disrupted the management of Crown Ceramics Nigeria Limited by blocking directors from doing their jobs and encouraging other workers to undermine the company’s leadership.

The petition says these employees stopped Corporate Affairs Commission officials from entering the company during an investigation ordered by the Vice President’s Office. They asked the police to investigate and prosecute these employees.

The majority shareholders also want Vice President Kashim Shettima’s help in his role as Chairman of PEBEC. They claim Mr. Dongfeng illegally stripped the company of assets, committed fraud, forged documents, and used company assets as loan collateral for another business without their consent.

They allege that company properties worth billions of naira were used to secure loans and that ownership records were changed without approval. The shareholders say they have lost access to a company they invested over $25 million into.

Some investors reportedly returned to China after being blocked from accessing the company. They are asking the government for help to ensure their safety, regain access to the company, allow investigations, and to resume managing the business.

Mr. Ekweozor said all allegations against his "Client are denied in their entirety, remain contested, and are connected with ongoing judicial proceedings which have not been finally determined."

The fight is still not settled. There are several cases still pending in courts in Abeokuta and Lagos as both sides wait for rulings. The majority shareholders insist they are wrongfully kept from a company where they hold a controlling stake and want their management rights restored.

Mr. Ekweozor told PREMIUM TIMES that it is "deeply concerning that allegations which are hotly disputed are now being presented to the media as though they have been established facts."

He added, "Our Client considers this a deliberate attempt to avoid the judicial process and to use publicity to get what should be settled through evidence and the law."

Crown Ceramics Nigeria Limited was registered in 2014 to import, export, manufacture, and engage in general contracting.