The Federal High Court, Lagos, will today begin the journey to determine the status of the 11th Annual General Meeting (AGM) of FBN Holdings Plc.
Justice Akintayo Aluko would entertain arguments from counsel to the parties, following an application by the plaintiff to commence contempt proceedings against the company and its board of directors.
On July 15, 2022, the court granted an order, stopping the organisation from implementing all decisions taken at its 10th AGM in Lagos.
Specifically, the court directed the respondents to maintain the status quo antem belum as at June 20, 2022, effectively putting on hold the appointment of Mr. Nnamdi Okonkwo as Group Managing Director and Mr. Julius Omodayo-Owotuga, as Non-Executive Director.
Listed as petitioner in the suit, marked FHC/L/CP/1271/2022, is Olusegun Onagoruwa, while the 1st to 4th respondents are FBN Holdings Plc; Chairman of the Board of Directors, Alhaji Ahmed Abdullahi; Non-Executive Director, Mr. Julius Omodayo-Owotuga and Group Managing Director, Mr. Nnamdi Okonkwo.
The court also restrained the respondents from issuing shares.
Justice Aluko granted the order after hearing arguments from human rights lawyer and Senior Advocate of Nigeria, Ebun-Olu Adegboruwa, on behalf of the petitioner.
In response to the suit, First Bank filed an application to discharge the order, while the Central Bank of Nigeria (CBN) applied to be joined in the suit as an interested party.
The court dismissed CBN’s application, but is yet to consider that of First Bank.
The plaintiff promptly commenced contempt proceedings against First Bank and its directors by applying to the court to file Form 48, being a notice of consequences of disobedience to the order of the court.
On July 27, 2023, Justice I.N. Oweibo, sitting as a vacation judge, granted leave to the plaintiff to commence contempt proceedings against First Bank and its directors.
Mr. Olusegun Onagoruwa, an aggrieved shareholder of First Bank FBN Holdings Plc, in the suit, claimed that the affairs of the company were being run illegally and oppressively.
Principally, the petitioner is contending that he was not served with statutory notice for the 10th AGM that was held on June 20, 2022.
Arguing the case on behalf of the plaintiff, Adegboruwa held that his client was by law entitled to be served with notice of the AGM, and having not been served, there is a case of breach of his constitutional right to fair hearing.
The counsel held that the decisions and resolutions of the 10th AGM, especially in relation to the appointment of directors, were null and void, as shareholders were not given the opportunity to know and approve the new Board of Directors appointed for the company by the Central Bank Governor, adding that the powers of the CBN boss to sack or appoint directors for the company did not take away the powers of shareholders to confirm the directors.
