“Shareholders Protest Court-Ordered AGM Suspension at FBN Holdings”

A group of shareholders at FBN Holding Plc (FBNH) has taken a stance against a recent court ruling that put a halt to the scheduled 11th Annual General Meeting (AGM). The shareholders convened in Lagos to voice their discontent over the use of legal measures to obstruct the AGM, asserting that AGMs hold a vital statutory significance and should not be obstructed.

The management of FBNH is currently in pursuit of plans to boost its issued share capital. This involves a proposed expansion from the existing N17.95 billion ordinary shares of 50 kobo each to N22.43 billion ordinary shares of the same denomination. Shareholders’ consent is being sought for a fresh capital infusion through a right issue. Additionally, the financial institution is seeking approval for the creation of 8.974 billion ordinary shares at 50 kobo each, as part of its strategy to raise funds.

The suspension order was based on a petition submitted by Olusegun Samuel Onagoruwa, leading to a court directive (suit No: FHC/L/CP/1271/2022) addressed to Nnamdi Okonkwo, Chairman of FBN Holdings. The directive outlined a prohibition against proceeding with the AGM, raising capital through any means, appointing new directors, or taking steps that would undermine the court’s order.

Representing minority shareholders, Alhaji Mukhtar Mukhtar, Chairman of the Trusted Shareholders Association of Nigeria, expressed concern over the attempt to disrupt the financial institution’s operations. He conveyed shareholders’ eagerness for the AGM to continue and for all resolutions to be addressed. He emphasized the importance of upholding the meeting’s integrity and ensuring the passage of essential resolutions.

In light of these developments, the shareholders’ protest emphasizes their dedication to ensuring the AGM’s unhindered continuation and the proper consideration of vital resolutions.