FBN Holdings extraordinary general meeting placed on hold following court order
An extraordinary general meeting in which First Bank shareholders were to vote on a decision to raise $300 million ($231 million) in fresh capital has now been put on hold after a Federal High Court maintained an earlier decision on Wednesday.
In July 2022, a court barred FBN Holdings, the parent company of First Bank, from holding any annual general meeting until the conclusion of a suit filed by a shareholder, Olusegun Onagoruwa, in 2021.
On April 17, Onagoruwas lawyers asked the court to stop First Bank from holding an extraordinary general meeting initially scheduled for April 30. On Wednesday, Justice Akintayo Aluko ruled that the earlier ruling is maintained.
FBN Holdings now faces a race against time to raise fresh capital, which requires shareholders approval at an extraordinary general meeting before the Central Banks deadline of April 2026. This is important considering the nature of legal matters in Nigeria where court cases sometimes take up to twenty years.
Nigerias biggest banks must raise $2.6 billion in 24 months after the Central Bank shared new minimum capital requirements. The regulator will not allow banks to use accumulated earnings or debt to meet the new capital requirements.
Hours after the April 30 meeting was canceled, Adesola Adeduntan, First Banks CEO, announced his resignation to “pursue other interests” eight months before his tenure expires. He led the lender for a record nine years.
*This is a developing story