FBN Holdings’ Shareholders Protest Court Order Suspending AGM

Some shareholders of FBN Holding Plc (FBNH), yesterday protested against a court order suspending the 11th Annual General Meeting (AGM) of the financial institution, and management proposed plans to raise fresh capital and appoint new directors.

The shareholders, in a protest in Lagos, decried the move by some individuals to use court to stop the AGM, noting that AGMs are statutory meetings which cannot be stopped from holding.

The management of FBNH seeks to increase its issued share capital from N17.95 billion ordinary shares of 50 kobo each to N22.43 billion ordinary shares of 50 kobo each and seeks shareholders’ approval to raise fresh capital by means of right issue. The lender is also seeking shareholders’ approval to raise funds via the creation of 8.974 billion ordinary shares at 50 kobo each.

A petition by Olusegun Samuel Onagoruwa upon which the order was obtained in suit No: FHC/L/CP/1271/2022 sighted by reporters and addressed to the chairman of FBN Holdings, Nnamdi Okonkwo said: “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.”

Chairman of Trusted Shareholders Association of Nigeria, Alhaji Mukhtar Mukhtar, while speaking on behalf of other minority shareholders, noted that shareholders are not happy that some individuals are trying to hold the financial institution into ransom.

He added that, “they therefore want the AGM to proceed, and all resolutions should be considered. We are here to register our displeasure, our discontent, our disapproval and rejection of the attempt by some shareholders to prevent the AGM of FBN from holding and thereby preventing some resolutions from be passed. We want the AGM to proceed, and the resolutions passed.”

The shareholders called on the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and other regulatory bodies to take actions and look into the crisis.

While noting that FBNH has an important, systemic function in the economy of Nigeria as one of the few banks that stabilise most of the monetary and fiscal policy and banking practices as a whole, Mukhtar urged the regulators to allow the financial institution to grow by enforcing best practices and by resolving the looming crisis.