Ownership Crisis: First Bank Defies Court Order, Insists On Holding AGM To Elect Femi Otedola As Director

First Bank Holdings Plc is insisting on holding its annual general meeting (AGM) as scheduled where it plans to elect its second single majority shareholder, Femi Otedola as a director.

First Bank Holdings said in a regulatory filing that it received an ex parte order of interim injunction on Friday, August 11, 2023, restraining it from proceeding with the AGM.

“Further to our announcement on August 10, 2023, that the Company was yet to be served with any Court Order, we hereby notify the Public and our Stakeholders that FBN Holdings Plc (“the Company”) was served with an ex parte order of interim injunction on Friday, August 11, 2023, restraining it from proceeding with the proposed Annual General Meeting (AGM) as scheduled for August 15, 2023.

” This was via Suit No. FHC/L/CS/1575/23 – In the Matter of Olojede Adewole Solomon, Adebayo Oluwafemi Abayomi and Ogundiran Emmanuel Adejare vs. FBN Holdings Plc,” the bank said in a filing obtained by THE WHISTLER.

The bank scheduled its AGM on Tuesday, August 15 where it would elect new directors and raise additional capital through a rights issue.

The agenda of the AGM reads in part, “To elect the following Directors: elect Samson Oyewale Ariyibi as an Executive Director and Olufemi Otedola as Non-Executive Director.

“That there shall be a capital raise of up to N150,000,000,000.00. The capital raise transaction shall be by way of Rights Issue on such terms and conditions on such date as may be determined by the Directors, subject to obtaining the approval of the relevant regulatory authorities.”

But a faction of the shareholders allegedly linked to Oba Otudeko went to court to block the AGM.

THE WHISTLER had reported that Olusegun Samuel Onagoruwa petitioned FBN Holdings upon which the order was obtained in suit No: FHC/L/CP/1271/2022.

Addressed to Nnamdi Okonkwo, FBN Holdings Chairman, the petition reads, “Take notice that unless you obey the directives in the Judicial Order contained in the Order made on the 15th July, 2022 by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for 15th August 2023 from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on 20th June 2022 or in any other manner overreaching, disobeying or undermining the said Order of court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”

A fresh order was obtained which FBNH initially denied being served.

However, in the fresh filing on the Nigerian Exchange Ltd, First Bank said it is lawyers filed and serviced the petitioners the notice of appeal challenging the suit.

First Bank also said that it has also begun proceedings to set aside the court order blocking it from holding the AGM.