FBN Holdings Plc (NGX: FBNH) has moved to dispel media reports that it has been served with a court order to stop its forthcoming Annual General Meeting.
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In a statement released by the financial services group on Thursday, FBNH stated that the assertion that it received a court order stopping it from holding its AGM scheduled for August 15, 2023 is a false narrative.
It stated that as at Thursday 10th August 2023, the company has not been served with any court order.
Earlier in the week, Thisdaylive reported that some shareholders of FBN Holdings Plc protested against a court order suspending the 11th Annual General Meeting (AGM) of the financial institution and management proposed plan to raise fresh capital and appoint new directors.
It went on to report that a petition by Olusegun Samuel Onagoruwa upon which the order was obtained in suit No: FHC/L/CP/1271/2022, seen by THISDAY and addressed to Nnamdi Okonkwo, FBN Holdings Chairman stated, “Take notice that unless you obey the directives in the Judicial Order contained in the Order made on the 15th July, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for 15th August 2023 from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on 20th June 2022, or in any other manner overreaching, disobeying or undermining the said Order of court, you will be guilty of Contempt of Court and you will be liable to be committed to prison and to there imprisoned.”
The Chairman of Trusted Shareholders Association of Nigeria, Alhaji Mukhtar Mukhtar, while speaking on behalf of other minority shareholders noted that shareholders were not happy that some individuals were trying to hold the financial institution to ransom.
He alleged that there were strong indications that the plot to stop the AGM was from the former Chairman of FBNH, Oba Otudeko, adding that the resolutions to raise more capital for the bank and to appoint directors into the board was met with stiff disapproval as the resolutions would cut the control the former chairman has on the bank.
They therefore want the AGM to proceed and all resolutions should be considered
In its statement signed by Adewae L.O Arogundade, acting company secretary, FBNH affirmed that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the company will notify the regulators and the public as appropriate if there is any lawful order to restrain the company from conducting same.
It thereby assured its shareholders that the AGM shall hold on August 15, 2023, a planned.
The company published its notice of Annual General Meeting on July 20th 2023, and will consider amongst other things;
- the receipt of the audited accounts,
- declaration of dividend,
- an increase of the company’s issued share capital from ) That the Company’s Issued Share Capital be and is hereby increased from NGN17,947,646,396 (Seventeen Billion, Nine Hundred and Forty-Seven Million, Six Hundred and Forty Six Thousand, Three Hundred and Ninety Six Naira) made up of 35,895,292,792 (Thirty-Five Billion, Eight Hundred and Ninety-Five Million, Two Hundred and Ninety-Two Thousand, Seven Hundred and Ninety-Two) Ordinary shares of 50 (Fifty) Kobo each to NGN22,434,557,995 (Twenty-Two Billion, Four Hundred and Thirty-Four Million, Five Hundred and Fifty-Seven Thousand, Nine Hundred and Ninety-Five Naira ) by the creation of 8,973,823,198 (Eight Billion, Nine Hundred and Seventy-Three Million, Eight Hundred and Twenty-Three Thousand, One Hundred and Ninety-Eight) Ordinary shares of 50 (Fifty) Kobo each,
- a capital raise by way of a rights issue.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
