ETB returned to Adenuga - As CBN reinstates him on ETB board

From Gbola Subair and Odidison Omankhanlen - 05.11.2009

THE Central Bank of Nigeria (CBN) has returned Dr. Mike Adenuga to the board of Equitorial Trust Bank, following its reconstitution by the shareholders of the bank.

A statement by the apex bank said it approved the return of Dr. Adenuga to the board because the recent audit carried out on the bank did not reveal any serious supervisory concern or criminal activity by any member of the board of ETB.

Having reviewed the terms and conditions of the Deeds of Covenant, the CBN has consented to the request aimed at further strengthening the bank.

In granting these requests, CBN noted that the Special Examination had not raised issues of serious supervisory concern or criminal activity by any member of the Board of ETB, the CBN,” statement added.

The CBN said it was accepting the request of the bank’s shareholders seeking its permission to be allowed to rectify lapses identified in the bank. In pursuance of that, the shareholders executed a Deed of Covenant, the specific terms and conditions of which included the following:

•The willingness of the shareholders to recapitalise the bank by way of injection of additional capital, latest, June 30, 2010;

•Restructuring, diversification and enlargement of the capital-base of the bank, either by way of a public offering of shares, securing a core investor or merger with a local bank within a one-year period;

•Addressing the corporate governance issues in the bank which were mainly ascribed to the previous executive management team in the bank;

•Reconstitution of the Board of Directors of the bank through the retirement of two non-executive directors and the appointment of four new non-executive directors, including Dr. Mike Adenuga Jnr. (CON), an erstwhile member of the board, subject to the approval of the Central Bank of Nigeria; and

•Convening a general meeting of the bank’s shareholders to ratify, through a resolution, all the nominated appointments to the bank’s board.
However, the CBN said it would closely monitor the implementation of the terms of the Covenant to ensure that the lapses were fully rectified and in the overall interest of the banking system.