Sanusi Can Remove Bank CEOs, Says Court

It was a major victory for the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, yesterday when a Federal High Court in Lagos held that he had statutory power to appoint and remove any bank chief executive or director.

Justice Mohammed Idris made this declaration while ruling on a case filed by some aggrieved shareholders of Union Bank Plc challenging the propriety of the appointment of executive directors into the board of the bank by Sanusi.

According to the judge, section 35 sub-section (2) (d) of Banks and Other Financial Institution Act (BOFIA) gives the CBN Governor the power to remove or appoint not withstanding anything in any written law or contained in the memorandum and article of association of the banks.

In the words of the judge, “in my view by virture of the combined effect of the provision of section 33 and 35 of BOFIA, the CBN Governor is empowered to order a special examination into the books and affairs of a bank.

“He can also intervene in the operation of a bank by removing and replacing the directors of a bank found to be in a grave situation; to hold otherwise is to impair the legislative intent underpinning the provisions, which is the ability of the CBN Governor to provide a failing bank with necessary managerial and operational support to facilitate the bank’s turn around.”

Justice Idris also noted that the two sections state that the CBN Governor could remove from office with effect from such date as might be set out in the order any director of a bank or appoint any person or persons or directors and provided in the order for the person or persons so appointed to be paid by the bank such remuneration as might be set out in the order.

He also said the law further stated that the governor could appoint any person to advise the CBN in relation to the proper conduct of its businesses and provided in the order for the person or persons so appointed to be paid by the bank such remuneration as might be set out in the order.

The judge also said: “It is clear from the word OR used in the law and it is also a settled law that the word OR is a distinction word used to express alternative or to give a choice of one or many things.

“On the whole, I hold that this originating summons lacks merit and is hereby dismissed and N20,000 cost is awarded in the favour of the respondent.”

jerry uzo:

thanks to the court for the verdict. sanusi should continue his good work in our banking sector .

martinosi:

RETARDS, What a shame, Sanusi would not have tried
this rubbish if they was not a "So-Called" financial crises in "North America"
& "Europe", these guys are just "Monkey does what Monkey Sees",
They are not capable of an original thought,

Now thbey want to reform the Banking system ,
Break up banks operations, which would lead to more merger, acquistions and fold ups etc, following the line of FED,BOE,ECB tatics,
what a set of parrots!!!,

All these banker guys are most time a liability than an assest to most
nigerian businesses and Individuals,

A Nigerian cant get a loan/facility smoothly without hassles, but a non-nigerian get it like "Yesterday", Makes the profit from his export and
keeps most of the profit in his country of origin and only puts back the loan principle, interest and Overhead to run his business in Naija,

And the country wants to move forward when the Banking sector does not give
a toss about the Small/ Meduim sized Naija Businessman,

What a load of Bull!!!

Omolulu:

DUDE SHUT THE F UP, U HAVE A PROBLEM WITH THE LAW, APPEAL ON IBRU AND ERASTUS'S BEHALF, people like this pig move the country backards 10 times over

IBRU had cross-holdings, so what does that tell you?

karmrash:

am confused on ds issue! because frm the theory we read in sch, we were made to understnd that a plc company always have a stakeholder meeting in runing their article of association, i tnk shareholders and other bonafide member of the company shd also have a say in the company affair

hercules07:

Where dem oooooooooooooooo? Where are the anti-sanusi people, the only thing that pains me about Sanusi is that he bailed out those banks, he should have allowed them to fail ( I know it is a catch 22 situation).

O.k he bailed out the troubled banks,
but who put them in trouble in the 1st place?,
Why not arrest and jail the other fraudulent Bank CEOs

As i said, these guys know what they are doing,
It just a shame that every Financial Crises needs a "Fall Guy"/"Patsy"
of Bernie Madoff Proportions and Cecilia Ibru was the Nigerian One.