Major shareholders’ groups have condemned alleged attempts to weaken Nigeria’s oldest financial services group, FBN Holdings (FBNH) Plc.
Shareholders under the auspices of the Trusted Shareholders Association of Nigeria (TSAN) alleged that renowned businessman, Oba Otudeko, was the one behind a court order that allegedly stopped FBN Holdings from holding its annual general meeting (AGM) scheduled for tomorrow.
Speaking to journalists, the Chairman of the Trusted Shareholders Association of Nigeria (TSAN), Alhaji Muktar Muktar, pleaded with Otudeko to join hands with other investors to reposition the FBNH.
A Federal High Court in Lagos recently issued an ex-parte order restraining FBN Holdings from holding its AGM pending the hearing and determination of the substantive matter filed before the court by three aggrieved shareholders of the bank.
Muktar, who had led minority shareholders to protest the move to stop the AGM, also advised Otudeko not to forget that First Bank contributed significantly to the growth of his business empire and should not take actions that would destroy the wealth of many Nigerians who are investors in FBN Holdings.
According to Muktar, in his 30 years of experience in the capital market, he has not seen where someone will approach a court to stop a statutory meeting from being held.
“AGM is a meeting authorised and recognised by the laws of Nigeria. So it is absurd for a group of individuals to go to court asking to stop an AGM and worse still, for any court to grant such an order.
“I can’t understand what the Judiciary is turning into. I have never seen a judge stop a statutory meeting from being held.
“I can give you several instances when, in the past, such matters were brought before the courts and judges dismissed them because you cannot stop a law from working.
“AGM is a lawful meeting and no judge, who is progressive in mind and wants to uphold the protection of the law, should stop an AGM,” he said.
He emphasised that Otudeko is the one behind the court’s move to stop the AGM.
“We are very sure that it is Oba Otudeko. He is the one that is behind this move to stop the AGM. Someone who has benefitted immensely from this bank. Otudeko’s business activities enjoyed significant funding from the First Bank of Nigeria.
“He was a director and rose to the position of a Chairman in the past. Only recently he bought into the bank and he is probably afraid that if the resolution to raise fresh capital is passed at the AGM, his holdings would be diluted. This is very bad.
“An institution that has built its business empire should not be treated this way. He is having these fears due to the coming of certain investors who have boosted confidence in the bank.
“These fears are unfounded. I don’t see any reason why any individual should be afraid of resolutions that will enhance the performance of the bank by bringing more money to the bank.
“As you know, the fabric of the banking business is capital. Any bank that does not have enough capital to give out loans, finance businesses will not do well in the face of the strong competition,” Muktar said.
