FBN shareholders object to AGM’s suspension and call for government action

In an effort to prevent the financial institution from holding its annual general meeting as scheduled, several shareholders protested on Monday outside First Bank of Nigeria Holdings’ Lagos headquarters.

Minority shareholders assembled in front of the offices, displayed signs, and requested that the organisation be let to fulfil its legal obligation to host AGMs.

Following the acquisition of the controlling interest by a company connected to billionaire businessman Oba Otudeko, there has been a dispute over the ownership of FBN Holdings.

Mukhtar Mukhtar, chairman of the Trusted Shareholders’ Association, spoke on behalf of the protesting shareholders and expressed disappointment in the attempt to prevent the AGM from taking place.

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“We are here at the First Bank office to express our displeasure, our discontentment, and our rejection of the attempt by some shareholders to prevent the Annual General Meeting of First Bank from taking place and from preventing the consideration of some very important resolutions for the development of the bank,” he said.

These shareholders have petitioned the court to prevent First Bank from raising capital in the same manner as other banks and to prevent the appointment of certain directors to the bank’s board. The AGM is unlawful, as those who have sought a judicial halt to it are aware. AGMs are required by law.

In a notice published in July, FBN Holdings stated that, subject to shareholder approval at the Annual General Meeting scheduled for this month, it sought to raise new capital through a rights issue. The lender stated that it planned to raise money by issuing 8.974 billion ordinary shares at a price of 50 kobo each.

Mukhtar also demanded that the Nigerian Stock Exchange, Securities and Exchange Commission, and Central Bank of Nigeria intervene in the ongoing struggle for the lender.

“The regulators, including the Securities and Exchange Commission, Nigerian Stock Exchange, and Central Bank of Nigeria, should get involved in this issue,” he stated. They are aware that AGMs are required by law.

We are aware that First Bank’s management wants the AGM to take place and to consider all of the resolutions, but some shareholders have made it impossible for them to do so. The Nigerian economy significantly and strategically depends on the First Bank of Nigeria. It’s a bank that needs room to expand. The regulators’ silence in this situation is illogical.

“We’ll keep organising protests and signing petitions. How can authorities remain silent while a few people demand ransom from a bank with First Bank status? With this circumstance, the regulators cannot act in a nonchalant manner any longer. They need to exercise some control. The regulatory authorities must take action because we cannot afford to let First Bank fail.

FBN Holdings had also mentioned in its notice of the AGM that it will put up two newly appointed directors for approval by shareholders.

Femi Otedola, a millionaire businessman who was named Director on July 9, 2023, and Samson Ariyibi, the Executive Director for Finance, Investment, Management and Oversight, who was appointed on October 21, 2022, are among the directors.