By Milcah Tanimu
Shareholders of FBN Holdings Plc have demanded an Extraordinary General Meeting (EGM) to remove chairman Femi Otedola. They cite concerns over governance and internal crises during his leadership. The demand has sparked questions about the Central Bank of Nigeria’s (CBN) corporate governance rules.
The shareholders invoked Section 215 (1) of the Companies and Allied Matters Act (CAMA). The section allows for an EGM within 21 days. They aim to remove Otedola and non-executive director Julius Omodayo-Owotuga. The shareholders accuse Otedola of mismanagement and destabilizing the bank.
A significant issue is former CBN Governor Godwin Emefiele’s alleged role. Shareholders claim Emefiele helped Otedola acquire key shares in FBN Holdings. This led to his appointment as chairman. The shareholders also allege Otedola influenced the resignation of former CEO Adesola Adeduntan and the removal of other executives.
Otedola is accused of securing a $50 million loan from the African Export-Import Bank (Afreximbank). The loan aimed to strengthen his control over FBN Holdings. The shareholders prefer a rights issue or public offer rather than the company’s N360 billion private placement.
In response, FBN Holdings issued a statement. It assured stakeholders that the call for Otedola’s removal would not affect operations. The company emphasized its commitment to corporate governance and performance. However, the share price dipped to N31.50 on the Nigerian Exchange Limited (NGX).
Patrick Ajudua, president of the New Dimension Shareholders Association, commented on the matter. He urged the CBN to enforce governance rules. Ajudua warned that failure to resolve the issues could lead to the bank’s collapse and loss of shareholder investments.
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