The Agricultural Development Bank (adb) has indefinitely postponed its 2018 annual general meeting following revelation that some of its shares being held by four investors in the bank were obtained through questionable means.
The Bank of Ghana on Monday July 16 declared as invalid, the over 50% shares of Belstar, Starmount, SIC-FSL and EDC in adb because the entities acquired the shares in 2016 without recourse to the country’s banking laws.
“It has also come to the notice of the Bank of Ghana that the shares acquired by Belstar and Starmount were acquired with funds obtained from uniBank Ghana Limited using emergency liquidity support obtained by uniBank Ghana Limited from the Bank of Ghana in questionable circumstances,” BoG explained.
It thus ordered that all directors appointed by the four entities to the ADB Board, cease holding themselves out as directors of the bank with immediate effect.
Management of adb consequently issued a statement Tuesday to announce postponement of the AGM “until further notice”, adding a new date will be announced later.
“The postponement has become necessary due to the order from the Bank of Ghana dated July, 16, 2018 concerning certain shareholders of the bank,” the statement explained.
The bank was expected to seek approval from its shareholders at the AGM to raise about 310 million cedis to meet the new minimum capital requirement set by the Bank of Ghana for all commercial banks in the country.
“I can assure our numerous customers that before the end of this year the Bank will get the money to meet the BOG requirement and the Bank will remain in business to serve customers better,” MD of the bank, Dr. John Kofi Mensah said in early this month.
It is however unclear whether the latest development could affect efforts by the bank’s to raise the new minimum capital requirement, which some indigenous local banks are struggling to meet.
Meanwhile, the Board and Management of adb have assured customers of the bank that the latest decision by the central bank does not in anyway affect business operations at all its 78 branches.