Supreme Court suspends Court of Appeal order restoring GN Savings and Loans licence

The Supreme Court has stayed the execution of the Court of Appeal’s decision that restored the operating licence of GN Savings and Loans Company Limited.

The order, issued by the apex court, will remain in effect until the final determination of the substantive issues before it. The decision means GN Savings and Loans Company Limited cannot immediately enforce the Court of Appeal’s June 2026 judgment directing the restoration of its licence.

The stay also temporarily prevents the implementation of the order requiring the Receiver of the company to return possession, management and control of the company’s assets and operations to its shareholders.

Court of Appeal ruling
In June 2026, the Court of Appeal unanimously restored the licence of GN Savings and Loans Company Limited after overturning an earlier High Court decision that upheld the revocation of the licence by the Bank of Ghana (BoG).

A three-member panel of the Court of Appeal ruled that the revocation process was unfair and unreasonable. The court subsequently ordered the Receiver to hand over control of the company’s assets and affairs to the shareholders.

Background to the case
GN Bank Limited was reclassified as a savings and loans company on January 4, 2019, and subsequently renamed GN Savings and Loans Company Limited.

However, on August 16, 2019, the Bank of Ghana, under the leadership of then Governor Dr. Ernest Addison, revoked the company’s operating licence as part of the financial sector clean-up exercise and appointed Eric Nana Nipah as Receiver.

Following the revocation, Groupe Nduom, owners of GN Savings and Loans Company Limited and led by Dr. Papa Kwesi Nduom, challenged the decision at the High Court in Accra.

The company argued that the BoG’s action violated its fundamental human rights and asked the court to reverse the revocation of the licence.

High Court decision
The High Court, presided over by Justice Gifty Addo Adjei, dismissed the application and upheld the Bank of Ghana’s decision.

The court held that the Central Bank acted within its mandate after it became evident that the company was unable to meet its financial obligations due to governance challenges.

During the proceedings, lawyers for the Bank of Ghana and the Attorney-General argued that the High Court’s jurisdiction had been wrongly invoked, insisting that disputes involving banking licence revocations should be handled through arbitration.

However, counsel for Dr. Nduom, Dr. Justice Srem Sai, rejected that argument, maintaining that the revocation amounted to a violation of his client’s rights.

In its ruling, the court said the applicants failed to demonstrate that the company was solvent and capable of meeting its obligations at the time the licence was revoked.

Justice Addo Adjei dismissed claims that the BoG acted unreasonably or with malice, stating that the revocation was carried out in accordance with the law.

On claims of violations of administrative justice, the court held that the Central Bank acted within the powers granted under the 1992 Constitution and that no illegality occurred in revoking the licence in circumstances where the company was facing insolvency.

The court further ruled that the company was not discriminated against, noting that other financial institutions experienced similar regulatory actions during the banking sector clean-up.

It also stated that claims relating to funds owed to the company by government could be pursued through the appropriate channels, including the Ministry of Finance.

Appeal to the Court of Appeal
Dissatisfied with the High Court’s decision, Dr. Nduom, through his lawyer Cletus Alengah, appealed the judgment at the Court of Appeal.

The appellate court subsequently overturned the High Court’s decision and restored the licence of GN Savings and Loans Company Limited, a ruling that has now been suspended by the Supreme Court pending the determination of the case before it.