New Shareholders Join Legal Push to Halt FBN Holdings’ 12th AGM Amid Controversies

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Olori Uwem

Active Member
Mar 18, 2024
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New Shareholders Join Legal Push to Halt FBN Holdings’ 12th AGM Amid Controversies

Summary of Developments:

Three additional shareholders of FBN Holdings Plc—Olojede Solomon, Adebayo Abayomi, and Ogundiran Adediran—have approached the Federal High Court in Lagos, seeking to halt the company’s 12th Annual General Meeting (AGM), scheduled for November 14. This latest application follows a similar request by shareholder Kujenya Yusuf, aiming to stop the virtual AGM.

Key Details:

1. Court Motion for Injunction: The applicants have filed a Motion on Notice dated November 1, requesting the court to issue an injunction that would prevent FBN Holdings from conducting the AGM. They are also seeking an order for the Director General of the Securities and Exchange Commission (SEC) to disregard any resolutions or actions taken at this AGM.
2. Allegations of Shareholder Rights Violation: The applicants claim that Leadway Holdings Limited, in collaboration with FBN Holdings, is attempting to sideline other shareholders. They accuse Leadway Holdings of seeking a court-ordered virtual AGM to push decisions that may limit shareholders’ participation.
3. Contempt of Court Proceedings: The applicants argue that the recent AGM announcement violates pending court proceedings and an adjournment scheduled for November 18. They assert that by proceeding with the AGM, FBN Holdings is disregarding the court’s authority, as the agenda allegedly includes crucial resolutions about share capital increases—the core subject of the ongoing lawsuit.
4. Request for Restorative Orders: The shareholders are asking for orders that would reverse any actions or decisions taken at the AGM, including any resolutions to raise the company’s share capital. They contend that holding the AGM before the court ruling undermines judicial proceedings and imposes a predetermined outcome.
5. Background of Legal Disputes: Leadway Holdings had previously sought a court-sanctioned AGM, arguing that FBN Holdings faced challenges in organizing the meeting due to multiple lawsuits. However, shareholders opposed to the AGM claim that it would proceed with resolutions contrary to their interests and without appropriate judicial oversight.

Conclusion:

This legal contest reflects a broader tension among FBN Holdings’ shareholders, centered on transparency, participation rights, and compliance with judicial processes. The court’s forthcoming decisions will play a critical role in resolving the conflict and determining the legitimacy of FBN Holdings’ 12th AGM.