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SSNIT's EGM to remove directors of HFC Bank in limbo

By Joy Business
Business & Finance SSNIT's EGM to remove directors of HFC Bank in limbo
JAN 26, 2015 LISTEN

The Extra-Ordinary General Meeting requested by SSNIT to remove three directors on the HFC Bank board appears to be in limbo.

A statement issued by the company secretary of HFC Bank and copied to Joy Business said the EGM has been postponed.  

According to the statement, the decision was taken following the filling of motion for stay of execution pending appeal which is dated January 26 2015.

SSNIT Monday morning nominated three persons that should be elected as Directors of the HFC Bank at an emergency Extra-Ordinary General Meeting that initially scheduled for January 27, 2015.  

The nominated directors are Ebenezer Tetteh Tagoe, Pual King Aryene and Victoria Emeafe Hardcastle. 

These nominated directors are expected to replace three other persons on the board SSNIT wants removed.

It is however unclear for now whether one of these nominated persons will be put forward or nominated as the new Board Chair of the bank.

SSNIT explained that it wants to remove the three directors, which includes the current board Chairman, Muriel Edusei who are accused of not serving the interest of shareholders.

Corporate governance expert and lawyer Joe Aboagye Debrah is asking SSNIT and management of HFC Bank to take their concerns to their industry regulator rather than settling scores in public.

SSNIT and Management of HFC Bank have over the past weeks been accusing each other of flouting governance rules and taking actions that go against the bank's regulation.

But Mr. Debrah says since their actions are hurting the bank, they should rather turn to Bank of Ghana and the Securities and Exchange Commission to address their grievances. 

Mr. Debrah also added that they are lucky that their actions and utterances have not resulted in a continuous decline in the value of their shares on the local bourse.

 Below is the bank's letter
HFC BANK (GHANA) LIMITED
                        NOTICE OF POSTPONMENT OF EXTRAORDINARY GENERAL

                                                                        MEETING

NOTICE IS HEREBY GIVEN that following the filing of an application for MOTION FOR STAY OF EXECUTION PENDING APPEAL dated the 26 th  January 2015, the Extraordinary General Meeting requisitioned by Social Security & National Insurance Trust (SSNIT) of HFC Bank (Ghana) Limited (the “Company”) scheduled to be held on Tuesday, 27 th  January 2015 at Christ The King Parish Hall, Accra is hereby postponed.

 A.G COMPANY SECRETARY

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