The Corporate Affairs Commission (CAC) has placed a caveat on the record of First Bank of Nigeria (FBN) Holdings amidst a tempest of legal battles.
This action follows the turbulence within the bank’s boardroom, fueled by multiple court cases initiated by disgruntled directors.
The turmoil gripping the bank stems from shareholder protests against its internal governance and shareholding structure. Some shareholders have resorted to legal action, notably exemplified in the case of Olusegun Samuel Onagoruwa v. FBN Holdings Plc (Suit No. FHC/L/CP/1271/2022). Onagoruwa challenges the Board of Directors’ authority to appoint new members while legal disputes are ongoing.
The motion seeks to nullify the recent appointments of non-executive directors made by FBN Holdings Plc, citing a subsisting court order. This lawsuit is one of several challenging FBN Limited’s internal governance, with existing court injunctions preventing the holding of the last two Annual General Meetings.
In a significant development, the Corporate Affairs Commission has intervened, placing a caveat on FBN Holdings’ record pending the resolution of Suit No. FHC/L/CS/1575/2023. This move underscores the gravity of the litigations threatening the stability of the venerable bank.
Former Chairman of Asset Management Corporation of Nigeria (AMCON) and Senior Advocate of Nigeria, Dr. Muiz Banire, has accused First Bank of flouting court orders and engaging in illegal practices. Banire warns of dire consequences if the bank continues down this path, emphasizing the need for accountability and adherence to the rule of law.
Amidst these challenges, concerns abound regarding the bank’s ability to meet the Central Bank of Nigeria’s recent directive for banks to recapitalize. Shareholders fear the ongoing crisis could impede the bank’s efforts to strengthen its capital base and jeopardize its long-term viability.
Stakeholders, including union leaders and shareholders, are calling for urgent resolution of the disputes to prevent further damage to the bank and safeguard the interests of depositors and shareholders. With Nigeria’s economy facing critical challenges, swift action is imperative to prevent another major bank collapse and support efforts to revitalize the nation’s financial sector.
