As the board of Afribank Nigeria Plc meets this morning to pass a resolution to bring in institutional investors to acquire the bank, the shareholders have dragged the newly appointed management of the bank, its chairman, the Central Bank of Nigeria (CBN), its governor and other non-executive directors to the Federal High Court in a bid to halt the move.
The shareholders, THISDAY gathered, served originating summons dated December 3, 2009, on Afribank yesterday.
The CBN is expected to get its copy today.
The summons certified by the chief registrar of the Federal High Court, Lagos, Mrs. A.A. Sanyaolu, was based on an affidavit by one of the shareholders of the bank, Igbrude Moses Oke.
The CBN had a few weeks ago appointed seven financial advisers for 10 banks said to be in grave financial conditions by the audit exercises announced on August 14 and October 2 this year.
The banks are: Afribank Plc, Finbank Plc, Intercontinental Bank Plc, Oceanic International Bank Plc, Union Bank of Nigeria Plc, Bank PHB Plc, Equatorial Trust Bank Limited, Spring Bank Plc, Wema Bank Plc and Unity Bank Plc.
Top executives of the first eight banks had been sacked and replaced with new management teams, while the last two had their management teams retained by the CBN, which injected a total of N620 billion into eight of them.
The advisers are Deutsche Bank, Chapel Hill Denham, Stanbic IBTC, Olaniwun Ajayi LP, Kola Awodein & Co, KPMG Professional Services and Akintola Williams Deloitte.
According to a statement from the CBN, they are expected to work with the boards and management of their respective banks by exploring all options for securing their stability and long-term future growth.
It was based on these developments that the board of Afribank slated a meeting for today with a view to passing a resolution seeking to bring in an institutional investor to recapitalise or acquire the bank.
But Afribank’s shareholders led by Oke, has asked the court to give declarations that:
•To the extent that no report from the purported special examination into the books of Afribank said to have been ordered by the CBN governor was made available to the bank and or its members and their response there made and or entertained, the actions of the defendants remain null, void and of no effect.
•The defendant (CBN) claimed to have conducted special examination of 24 licensed banks in Nigeria and in at least in three of the banks the EDs and shareholders were allowed by the first (CBN) and second defendants (CBN governor) particularly Equitorial Trust Bank, were allowed to inject additional capital, while denying same treatment to the other banks and this constitutes unfair and discriminate treatment under section 42 of the Federal Republic of Nigeria.
•The entirety of the circumstances surrounding the actions and steps taken by the first and second defendants in interfering in the business and operations of the bank from the 14th of August, 2009 including but not limited to the purported removal of the MD and EDs of the bank and purporting to replace them with the third to seventh (current MD and its EDs) defendants are illegal, wrongful and void having been done in bad faith and in the absence of compliance with the due process required by the constitution of the Federal Republic of Nigeria.
•That the entirety of the actions of the first and second defendants in interfering in the operations of the bank both by themselves and through the third and seventh defendants since the 14th of August, 2009 inclusive of the purported advance of N50 billion to the bank by these defendants are lacking in good faith, highly reckless, injurious to the bank and its members.
•An order setting aside and invalidating entirely all steps and actions taken by anyone of them through the third and seventh defendants since August 14, 2009.
•A declaration of an order of perpetual injunction restraining the first and second defendants or any of their agents or officers from continuing to interfere in the business and operations of the bank.
•Payment of the sum of N500 billion by the first and second defendants being punitive and or exemplary damages in favour of the bank.
•Seeking an order of interculocury injunction restraining the third to seventh defendants from continuing to parade themselves as MD/CEO or EDs as the case may be pending the determination of the suit.
These actions are being taken against the Arah Nebolisa led management of Afribank, its non-executive directors, its chairman (Osa Osunde), the CBN, CBN governor, Lamido Sanusi and the Corporate Affairs Commission (CAC).
THISDAY gathered that hearing on the case has been fixed for December 16, 2009.