Wema Bank shareholders suit against CBN for Thursday

Gbola Subair, Abuja - 25.02.2008

The suit filed by the aggrieved share holders of WEMA Bank against the Central Bank of Nigeria (CBN) has been slated for hearing on Thursday.

The shareholders were seeking the courts order restraining the CBN from dissolving the board and management of the bank.

The suit with No. FHC/EN/CP/4/2007, was filed at the Federal High Court, Enugu by Chuma Oguejiofor on behalf of the shareholders.

The shareholders, include the National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu; Alhaja S.A. Ayodele Kudaisi, Mr. Moses Igbrude; and Mr. Adebayo Adeleke.

Mr. Lekan Bello and Mr. Bunmi Fashonu are also joined as respondents in the suit Nwosu, who confirmed the new date on Sunday, insisted that the shareholders would go ahead with the suit against the bank and the CBN.

Nwosu disclosed that Odu’a Investment was no longer qualified to hold four slots on Wema Bank board, having cut down its shareholding in the bank from 40 to 9.8 percent.

He said the legal action was aimed at safeguarding the interest of Wema Bank shareholders and also ensuring that the Code of Corporate Governance is strictly adhered to as the practice in the other developing and developed countries.

Odu’a Group, , has slashed its equity in Wema Bank, in line with the Code of Corporate Governance, which limits government’s direct and indirect equity holding in any bank to 10 per cent.

The shareholders said they pursued the action on the allegation that the banking sector regulator ignored the appeal of the Attorney General of the Federation (AGF) and Justice Minister, Mr. Michael Aondoakaa, for a stay of action on the bank, pending the determination of the suit.