FBN shareholders protest suspension of AGM and call for intervention from government

On Monday, some shareholders demonstrated outside First Bank of Nigeria Holdings’ Lagos offices in protest of an attempt to prevent the banking firm from holding its annual general meeting as scheduled.

AGMs are required by law, and the minority shareholders who assembled in front of the company’s headquarters asked that they be let to fulfil this obligation.

After a company connected to billionaire businessman Oba Otudeko bought the majority of the company, there was a dispute about the ownership of FBN Holdings.

Mukhtar Mukhtar, Chairman of the Trusted Shareholders’ Association, spoke on behalf of the shareholders who were protesting and voiced his disappointment with the attempt to halt the AGM.

 

“We are here at the First Bank office to register our displeasure, our discontentment, and our rejection of the attempt by some shareholders to prevent the Annual General Meeting of First Bank from taking place and from precluding the consideration of some very important resolutions for the development of the bank,” he said.

These shareholders have filed a lawsuit with the court to prevent First Bank from raising capital in the same manner as other banks and to prevent the bank’s board of directors from appointing certain directors. Those who have taken the AGM to court to stop it are aware that it is unlawful. AGMs are legally required meetings.

In a notification released in July, FBN Holdings stated that it planned to raise additional funds through a rights issue, subject to shareholder approval at the annual general meeting scheduled for this month. The lender announced its plan to raise money by issuing 8.974 billion new common shares valued at 50 kobo each.

Mukhtar also requested the Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Stock Exchange to get involved in the ongoing struggle for the lender.

The Securities and Exchange Commission, the Nigerian Stock Exchange, and the Central Bank of Nigeria should all become involved in solving this issue, he continued. They are aware that AGMs must be held by law.

We are aware that First Bank’s management would like the AGM to take place and for all proposals to be addressed, however some shareholders have prevented this from happening. In Nigeria’s economy, First Bank of Nigeria plays a significant and systemic role. It is a bank that must be given room to expand. It is illogical for the regulators to remain silent in this situation.

“We’ll keep holding demonstrations and signing petitions. How can authorities remain silent when a few individuals hold a bank with First Bank status ransom? In light of this circumstance, the regulators cannot maintain their complacent attitude. They have to exercise some regulatory authority. First Bank cannot be allowed to fail, so the regulatory authorities must take action.

FBN Holdings also stated that it would put forth two newly appointed directors for the approval of shareholders in its notice of the AGM.

The directors include Samson Ariyibi, the executive director for finance, investment, management, and oversight, who was appointed on October 21, 2022, and the billionaire businessman Femi Otedola, who was named director on July 9, 2023.