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08.04.2006 Business & Finance

Gomoa Ajumako Rural Bank increases share capital

By GNA

Gomoa Afransi (C/R), April 9, GNA - The Gomoa Ajumako Rural Bank (GARB) with its headquarters at Afransi in the Central Region, has increased its share capital of 875,000 to 2 million to meet the 500 million cedis operating share capital required by the Bank of Ghana (BOG).

The Bank also increased its preference shares of 125,000 to one million to raise more funds than the stated capital of the BOG for rural and community banks.

These resolutions were adopted at an extraordinary Annual General Meeting (AGM) of the shareholders at Gomoa Afransi. Nana Abor Yamoah II Chief of Gomoa Fetteh and Vice Chairman of the Board of Directors, said the Central Bank advised GARB to strive the 500 million cedis operating share capital by 31st December, 2006 or be absorbed by another bank.

Nana Abor Yamoah known private life as Mr Eddie Acquaye, a Chartered Accountant, reminded the shareholders of the BOG order to commercial Banks to raise their operating share capital to 70 billion cedis and the need to purchase more shares especially preference shares to enable the bank to meet the requirement.

He stated that the share capital of GARB, which was 146 million cedis, fell far below the statutory minimum operating share capital of 500 million cedis for rural banks.

Nana Abor Yamoah stated that the bank had increased the value of a share from 100 cedis to 300 cedis to meet the required operating share capital.

He said the resolution would enable the Board to float 700 preference shares at 300 cedis per share to 210 million cedis to top up the 306 million-cedi operating share capital existing. Nana Abor Yamoah said the Bank had transferred 160 million cedis from its income surplus account to ordinary share capital to bring the balance to 306 million cedis.

Mrs Rose Newman, Chairperson of the Bank, appealed to the shareholders especially government workers to buy more shares to avert a merger with another bank and stated that "this is a distress call to you to save your bank, please gird up your loins rush now to save your bank and you will never regret you did".

She noted that workers and other customers of GARB received their salaries promptly and were granted loans and overdrafts without delay because of the efficient customer service and good care experience at the Bank.

Mrs Newman appealed to the people in the Gomoa and Agona areas who enjoyed its services to buy more equity shares under a "special salvage scheme of GARB" that would attract special dividend at the end of the year.

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