Shareholder groups condemn compulsory resignation of Skye Bank chiefs — Helen Oji

By Ikenga Chronicles July 6, 2016

Shareholder groups condemn compulsory resignation of Skye Bank chiefs — Helen Oji

‘Decision will affect banking stocks’

Shareholders in the nation’s capital market have faulted the alleged forceful resignation of top executives of Skye Bank by the Central Bank of Nigeria (CBN) over failure to meet capital adequacy ratio.

The shareholders, who spoke with The Guardian, argued that the apex bank does not have any vested power to fire and replace the Managing Director of banks over inability to meet capital adequacy ratio.

Specifically, the President, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, maintained that the CBN should have informed the board of the bank, after which the board will call for an extra ordinary general meeting of shareholders.

He added that the onus lies on the shareholders to consider the option of raising fresh capital to shore up the business.“If CBN feels the bank is not meeting up to the requirement, they should inform the board, while the board would inform shareholders on the need to bring in new capital to boost the company which takes 18 months.

“They sacked and replaced, are they going to bring in money to boost the capital adequacy ratio. They are causing unnecessary panic. The depositors would want to take their money, which would further destroy the bank.

“They have already caused panic in the bank, even if they reverse the action, the damage has been caused. The staff would become restive now because there is no more security of their job. There is a chain of destruction to this singular net,” he said.

Corroborating the view, the National Coordinator, Progressive shareholders Association, Boniface Nwosu blamed the CBN for supporting Skye Bank’s acquisition of Mainstreet Bank since they could not meet the capital adequacy ratio.

“CBN and the Asset Management Corporation of Nigeria (AMCON) should explain to the public the process of the acquisition, whether due diligence was followed. There was no physical cash brought into the bank before the acquisition. AMCON was just used as a vehicle to take over the bank. A lot of things went wrong and we predicted it,” he said.

The President, Constance Shareholders Association, Segun Ismail, said it is unfortunate that the development came up now when the financial sector is still struggling to find its footings out of this economic mess we are in now.

“The decision taken by CBN is good, but not sound because the option of consultations with other relevant bodies like shareholders and stakeholders has not been exhausted, before towing the punitive measure path.

The President, Renaissance Shareholders Association,Timothy Olufemi, said: “We, shareholders note the current impasse, disagreement between CBN and board of Skye Bank. The board resigned in the morning, then CBN replaced the board in the evening. May God save us. We are waiting for more details.”

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