First Bank of Nigeria’s AGM Agenda Altered – Capital Increase and Shareholder Rights Shift

First Bank of Nigeria Holdings has made revisions to its agenda for the forthcoming Annual General Meeting, set to take place next Tuesday.

In a notice sent to shareholders and the Nigerian Exchange Limited in July, the modified portions of the agenda pertain to the resolution concerning capital increase, and shareholders will be waiving their preemptive rights for shares that remain unsubscribed.

A fresh notice from the financial institution, on Wednesday, showed that the amended portions 8b and 8d now reads, “(b) That there shall be a capital raise of up to N150,000,000,000. The capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.”

“(D) That any shares not taken up by existing shareholders within the period stipulated under the Rights Issue may be offered for sale to interested shareholders of the company on such terms and conditions as may be determined by the directors, subject to obtaining the approvals of relevant regulatory authorities.”

The Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.

A petition by Olusegun Onagoruwa, upon which the order was obtained in suit No: FHC/L/CP/1271/2022, addressed to Nnamdi Okonkwo, FBN Holdings Chairman, said, “Take notice that unless you obey the directives in the judicial order contained in the order made on the July15, 2022 by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 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 June 20, 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.”

Some shareholders had protested at the headquarters of the bank on Monday, calling for the AGM to be held, as well as solicited regulatory interventions.