BREAKING: FBN Holdings insists on holding AGM against court order
The management of FBN Holdings Plc on Thursday insisted that it will hold its 11th Annual General Meeting (AGM), despite a court ruling to suspend the annual meeting with shareholders.
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 Nnamdi Okonkwo, FBN Holdings Chairman 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 and you will be liable to be committed to prison and to there imprisoned.”
But, the Acting Company Secretary, FBN Holdings, Mr. Adewale Arogundade in a statement on the Nigerian Exchange Limited (NGX) noted that the oldest financial institution in Nigeria has not received lawful order to restrain the company from conducting same.
He said: “The attention of FBN Holdings Plc has been drawn to recent media reports purporting that the company has received a Court Order stopping it from holding the AGM scheduled for Agust 15, 2023.
“We confirm that this assertion is a false narrative as the company has as at the date hereof, not been served with any court order to stop the forthcoming AGM.
“Suffice to mention 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.”
He assured shareholders that the AGM would hold on August 15, 2023, as planned and management looked forward to their attendance and active participation at the meeting.
The management of FBN Holdings seeks to increase its issued share capital from N17.95billion ordinary shares of 50 kobo each to N22.43billion ordinary shares of 50 kobo each and seeks shareholders approval to raise fresh by means of right issue.
The lender is also seeking shareholder approval to raise funds via the creation of 8.974 billion ordinary shares at 50 kobo each.
Some shareholders of FBN Holding Plc (FBNH) on Monday protested against a court order suspending the 11th AGM of the financial institution, and management proposed plans to raise fresh capital and appoint new directors.
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 noted that there are 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 these 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
