Some shareholders of Oceanic Bank Plc, one of the banks whose managing directors were recently removed by the Central Bank of Nigeria (CBN), have introduced a new twist to the ongoing financial sector crisis by dragging the CBN, its governor; Sanusi Lamido and three others before the Federal High Court in Lagos.

The case, filed on Friday by the shareholders’ counsel, Ajibola Oluyede, accused the CBN of taking actions “detrimental to the interests of its [Oceanic Bank] shareholders and depositors.” The other respondents are John Aboh, the current managing director of the bank, Cecilia Ibru, the former managing director, and Hayford Alile, chairman of the bank’s Board of Directors.

The applicants are Stephen Isibor, who claims to have 455,000 ordinary shares of Oceanic Bank, and six others, on behalf of all other affected shareholders of the bank.

They are claiming that the CBN usurped the shareholders’ power by sacking Mrs. Ibru and that no fund can be injected into the bank, in form of equities, until such a proposal is ratified by the shareholders at a duly convened general meeting.

Also, the applicants, citing Sections 102, 124, and 166 of the Companies and Allied Matters Act, are challenging the authority of the reconstituted Board of Directors of the bank to “offer for subscription, or sell and/or allot shares, stock or any form of securities in the Bank.”

The applicants also want the court to decide whether the CBN and its governor can “acquire and or dispose of (by sale or otherwise) the interest of all the shareholders of the Bank, including restructuring of the Bank without the participation and consent of its shareholders.”

‘We’re just fine’

In his affidavit, Mr. Isibor said the “figures as contained in the 2008 financial year accounts of Oceanic Bank, audited by PriceWaterhouseCoopers and approved by the first and second respondents [CBN and Mr. Sanusi respectively] on the 13th of July 2009, clearly show that Oceanic Bank was far from being distressed.”

He also claimed that the CBN and its governor “only informed Oceanic Bank by a letter dated June 18, 2009 that it intended to carry out a ‘Joint CBN/NDIC Ad-hoc Assignment’”, the report of which was never sent to the bank before Mr. Sanusi proceeded to restructure it.

The matter is due for hearing within 30 days.

http://www.234next.com/csp/cms/sites/Next/News/National/5455758-146/Oceanic_shareholders_sue_CBN,_Ibru_.csp

interesting

Na wao! All dis gra gra sef!

who needs more protection? Oceanic bank Shareholders or the depositors?

I think the CBN is trying to ensure that depositors don`t lose their funds as a result of banks` collapse.

CBN`s action is justified.

Make shareholders go siddon.

yes afterall they are d true owners of d bank

What sanusi is doing is right!But still Nigerians need to check the action,because human being will never do anything that won't favour himself.

Good news, after all am also a Shareholder. At least i have 12,250 units of oceanic bank shares. You cant believe that i spent more than N200k (Two hundred thousand naira only) to buy that shares presently less than N50K (Fifty thousand naira only) in total value.

They (ibru family) use our money dey do family business.

i dont think his actions are right , are u guys so dumb, u run a check on a bank and instead of making it public u decide to go haywire by sacking ppl,when some few months back u were also in part a signee dat the banks audit account for the year was ok,crazy counrty filled with crazy ppl,and for u dont u know dat the shareholders are the main pillars of the bank not the kobo kobo ppl drop in there , cos with out them there would have been no bank at the first place

nice.

how can CBN sign on the 13 and less than 30 days claim the bank is bad.

The shareholders are taking this stance because of the rumoured intention of Sanusi to sell off the banks later.
However they need not lose sleep cos Sanusi CANNOT(mark my words) sell the banks,so many political wheeler dealers and power brokers are major shareholders in these banks and they can make life very difficult indeed for Sanusi,they'll fight back and sanusi cannot withstand them in the long run

RUBBISH!!!

How come Cecilia Ibru's lawyer is now representing these so-called shareholders? It's time for Sanusi to seize the shares of Oceanic Bank.

Let the legal fireworks begin.

This is a huge 'caveat emptor' to prospective buyers. They just made Oceanic bank very unattractive in one deft move.That is the true motive behind suit. Certainly not to reverse anything.

This is not funny at all, i will like to see the end of the matter. all these banks are not giving us the best of service but i doubt if Oceanic is distressed as Sanusi says, i still have an account with them o o, used to be shareholder. i really want the truth to come out.

[size=16pt]More Shareholders Speak Out[/size]

Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria (ISAN)

What is going to be the fate of shareholders in the five banks that CBN said it was going to sell to the foreign investors?

CBN in the first place are not the owners of the banks that they said would be sold to foreign investors. The apex bank has no legal right to sell any privately owned bank to any foreign investor. I think they are going beyond their responsibility.
Our association is in support of the reforms that is being implemented but we are against the manner in which it hurriedly took the action by removing the managing directors and executive directors of the affected five banks.

The CBN’s responsibilities in the economy is among others to ensure monetary stability, regulate the banking industry to ensure that the banks perform the expected role it is expected to play to spur growth and development of the country. Other functions of the CBN include: Keeping and maintaining foreign exchange earnings for the country, lender of last resort to the banking industry etc. They are not meant to sell any bank that is not performing but has the power to discipline bank officials as well issuing and withdrawing bank licence.

So at the moment, we are going to keep our eyes on the banks and see how it is going to sell the banks and then we would look for a way we can resist it. The CBN giving its reforms does not recognise the interest of shareholders, what it is after is the interest of depositors. It forgot that without shareholders there would be no bank where depositors would transaction monetary activity.

Is the shareholders in support of the ongoing banking reforms?

Yes of course, we are in support of the reforms. Due process should have been followed before the sack of the five managing directors and their executive directors.
We are querying the rationale and parameters used by the apex regulatory bank for sacking the chief executives of the five banks over alleged misuse of shareholders funds and lack of risk management capability. The CBN’s approach of the reform sector has created a crisis of confidence locally and internationally for the Nigerian economy.

CBN as a bank of last resort was highly dishonourable in its approach to the nation’s banking ills as it has the capacity to bridge the liquidity gaps and work in harmony with the banks towards recovering the bad loans.

Our position flows from the fact that the CBN has refused to tell us the role of CBN three resident examiners in all Nigerian banks including the indicted ones. The hurried manner in which the so called examinations were done and the attendant series of rebuttals by perceived debtors show to a large extent the reform in the banking sector does not put the general economy into consideration. We are also saying that it is against natural justice to portray the banks’ MDs as devils while absolving government officials who approved the returns of the said banks.

Is shareholders in support of the way that these banks were run by accumulating so much loans?

We are not is support with the mannner and volume of loans given by these banks.
Most of the bad loans attributed to some highly Nigerian was actually occasioned by the Federal Government reneging on its agreement with them.

The case of Transnational Corporation of Nigeria (Transcop),owing the banks was actually invested in NITEL, which ownership is being controlled by the government having revoked Transcorp’s 51 percent holdings.We feel strongly that the Federal Government cannot be completely exonerated from the non performing loans of the banking industry because of her huge debt to local contractors. To us the inability of the government to service her indebtedness’ and the lack of will to address the general economy reflected in the banking industry crisis. We feel that it is illogical for a nation that has accepted and internalised due process and rule of law to allow one of her institutions to undermine our collective aspirations by the obnoxious removal of the five chief Executives of the banks without giving them opportunities to either understand the cause of their removal of defend themselves .Our association appreciate the CBN operation under a special instrument, it feel that such should be in consonance with companies and Allied Matters ACT (CAMA). The CBN’s new reforms has however completely eroded the right and privileges of Nigerian Shareholders in the Nigeria banks.

http://www.vanguardngr.com/2009/09/05/cbn-going-beyond-its-brief/

When the bank becomes insolvent, your shares will be worth zilch.

ScanLess:

This is not funny at all, i will like to see the end of the matter. all these banks are not giving us the best of service but i doubt if Oceanic is distressed as Sanusi says, i still have an account with them o o, used to be shareholder. i really want the truth to come out.

You trully speak my mind.Sanusi should have done this thing in a matured manner. See as the EFCC dey do gra gra and put people for cell like say dem be armed robber. Where are all the past governors that loothed public treasury--Lucky Igbinedion, James Ibori etc, there are all walking freely.

George Akume of Benue State inclusive, where are they? EFCC pls wake up

hmmmmmmn this is another Nija factor!

aquita:

who needs more protection? Oceanic bank Shareholders or the depositors?

I think the CBN is trying to ensure that depositors don`t lose their funds as a result of banks` collapse.

CBN`s action is justified.

Make shareholders go siddon.

Trueee talk, How are we relly shore that what this man Sanusi is doing now is for the intrest of these banks and their share holder becouse (uda aki ilu abugh ka uto ya na di no onu) the sound of biter coalar is alway quite different from it tast i am sure this man will not spring up with some other kind if suprises i keep my finger accross, i will sit tight and watch this home which has started till the end Nigeria we hail thee

aquita:

who needs more protection? Oceanic bank Shareholders or the depositors?

I think the CBN is trying to ensure that depositors don`t lose their funds as a result of banks` collapse.

CBN`s action is justified.

Make shareholders go siddon.

Trueee talk, How are we relly shore that what this man Sanusi is doing now is for the intrest of these banks and their share holder becouse (uda aki ilu abugh ka uto ya na di no onu) the sound of biter coalar is alway quite different from it tast i am sure this man will not spring up with some other kind if suprises i keep my finger accross, i will sit tight and watch this home which has started till the end Nigeria we hail thee

^^Obu Nna gi muru gi,nwanne!ilu igbo gi nka a,kajara akaja.

This mess is what people get when a leader is appointed instead of elected.
How will you justify the action of sanusi? this must be another case of betrayal or rather revenge, he has forgotten that any of the CEOs could have be the CBN Governor.

L+G,
One thing is sure. There is a master plan which is yet to unfold.
I know for one thing, that th CBN has the obligation not to carry out any act that will instill fear in the public, leading to excessive withdrawals that can affect the liquidity of a bank. For one thing Sanusi has failed in this.
Coming to the public to annouce that a bank which was one of the strongest banks in the country (Oceanic and Intercontinental Bank) is ailing, is the height if demarketing - an offence which the CBN normally punished other banks for.
Oceanic and Intercontinental banks had bad loans but were not in any way doing badly. They only ran into problems when Sanusi went on air to sack the MDs of the banks thereby causing panic and causing people to close their accounts en masse and make the banks run low in capital base.
Sanusi is responsible for the ailing state of Oceanic and Intercontinental bank . .if at all they are ailing now.
Can anyone answer these questions
1) Why is Sanusi in a hurry to sell of these banks?
2) Why did Sanusi have to announce publicly that a bank is ailing? (an offense in banking)
3) Why are the purported buyers Arabian investors?
4) Why are the northern senators kicking against bailing out the banks?


Now here is the grand plan I see.
From day one, Sanusi has been canvassing for foreign takeover of the major banks in Nigeria. This was even as far back as when he was being interviewed by the senate for the position of a CBN governor. One would normally wonder why the only home-grown sector of our economy that is doing well internationally and at home should be sold to foreigners. Is the foreign dominance in our Oil & Gas sector not enough for the north?
The north always complained that Soludo raised the the bar (25Bn) too high for them such that they cannot raise their own bank. They tried to set up Ja'Iz Bank but could not meet up to the 25BN capital base requirement.
The plan is for the Arabians to buy up our already made banks and convert them to Islamic banks. Banks that were built with the sweat of Nigerians.
If this is not the case, why then are northern senators kicking against the bailout for the banks that became ailing because of Sanusi's reckless broadcast?
Unfortunately, Sanusi has met a dead end. Mark my words.

na 2day!!

and the saga continues,

only in nigeria

i wonder why they did not sue the NSE when the market freefall began earlier this year.

even the freezeing of the shares of the five banks is in my opinion, illegal, and contrary to free market practices

what arrant idiocy and nonsense.

next thing GM shareholders will begin to sue obama for bailing out the car industry

all this while the shareholders have been siddon looking as the people running their proerty do as they wish. nobody ever gets agm and other invitations until a month after the fact. shareholders havd practically no say in the running of the bank. shareholders are passive sheep who do not bother to actually investigate the finanaces of their property. now that the chikens are coming to roost, they are making noise.

i remeber a few years ago walt disneys nephew led disney shareholders in a shareholder revolt to oust the then ceo micheal eisner. he was convinced the man would run disney into the ground. thats what active shareholders do.

bloody eejits

waiting for an enron/worldcom/parmalat meltdown before reality kicks in

@OYB, you dont get your agm invite because, your postal system sucks like hell, which boils down to an inept govt, lets face the truth why cant the efcc go after bloody politicians whos steal money with reckless abadon, was the lagos- benin road not awarded to a contractor.will we not be better off if efcc goes after the contractor and gets the road fixed, nigeria has bigr problems than running after ceos, who gave out loans(some of which are suspicious) , but most of which are non performing cos your inept govt cannot provide a condusive environment for them, dosent it bother u how many textile firm have shut down cos they cant keep running on generators or how many coys are relocating to ghana? wake up, we should start addrssing issues inrtead of lookin for scape goats

i despise oceanic. Full of sh.it

I FEEL THE SAME THING AS THE SHAREHOLDERS.

BECAUSE THE SHARE HOLDERS OWNS THE BANK NOT CBN

CBN IS A REGULATOR NOT OWNER

THEIR IS KONIKONI THING IN THIS CASE.