FBN Holdings successfully conducted its 11th annual general meeting (AGM) virtually on Tuesday, defying a court injunction aimed at halting the meeting. Despite claiming not to have received any court order preventing the AGM, the financial institution admitted to being served with an interim injunction via an ex parte order on August 11, 2023. This injunction, served under Suit No. FHC/L/CS/1575/23 titled “In the Matter of Olojede Solomon, Adebayo Abayomi, and Ogundiran Adejare VS. FBN Holdings Plc,” restrained the company from proceeding with the AGM.
FBN Holdings has responded by engaging its legal team to challenge the order and filed an appeal, seeking to set aside the entire proceeding and permit the AGM to continue as scheduled on August 15, 2023.
Backstory: Legal Wrangle over AGM
The Federal High Court in Lagos granted an interim order to halt FBN Holdings Plc’s scheduled AGM, set for August 15, 2023. This ruling was based on an ex parte application filed by three shareholders—Olojede Adewole Solomon, Adebayo Oluwafemi Abayomi, and Ogundiran Emmanuel Adejare. Their legal representatives, including Senior Advocates of Nigeria Muiz Banire and Kunle Adegoke, obtained this order from Justice Nicholas Oweibo on August 9th. The order restrains FBN Holdings Plc and its employees from conducting the AGM until the underlying disputes are resolved. Subsequent hearings are slated for August 16.
Going Forward: Striking a Balance Amid Tensions
Amid this legal tussle, shareholders protested at the bank’s headquarters last week, urging for the AGM to proceed while also calling for regulatory intervention.
During the AGM, the majority of shareholders (98.76%) voted in favor of a proposal to raise the company’s issued share capital. The capital increase would involve changing the number of ordinary shares and their value. Only a small minority (1.24%) opposed the resolution.
This AGM’s proceedings highlight the ongoing tensions between the bank and some shareholders, emphasizing the challenges of navigating legal disputes while continuing with regular business activities. As the legal process unfolds, the need to balance regulatory compliance, shareholder concerns, and the company’s operations becomes increasingly evident.
