Republic Bank supports SSNIT over corporate governance concerns

bankRepublic Bank, which is the largest Shareholder in HFC Bank has thrown its support behind the Social Security and National Insurance Trust (SSNIT) to remove and replace three directors of HFC Bank.

SSNIT has expressed concerns about the governance structure of HFC bank but those concerns have been rubbished by the bank’s management.

SSNIT formally requested for an Extra-Ordinary General Meeting (EGM). The EGM which originally scheduled to take place on January 20 was suspended due to the pending suit.

An Accra High Court later directed that the EGM must be organized on January 27, after two shareholders attempted to place an injunction on the process. Republic Bank commended the court for the swift delivery of the judgment.

The Director of African operations of Republic Bank Limited, Robert le Hunte in an exclusive interview with Citi Business News said the judgment is a victory for the shareholders of HFC Bank.

According to Robert le Hunte, they had raised similar issues in the past. “It is unfortunate that for shareholders to be able to exercise their rights, one needs to get to this position of actually holding an EGM…some of the issues that have been brought up by SSNIT have been issues that Republic Bank attempted to address in the past without success…we think that the issues brought up by SSNIT are legitimate,” he remarked.

Republic Bank and SSNIT command 66% of HFC Stocks. Republic bank alone owns 40% stake. The three HFC Board members expected to be removed and replaced include the Board Chair, Muriel Edusei , Francis Koranteng and Charles Ofori-Acquah.

Citi Business News sources have confirmed the Extra Ordinary General meeting is expected to be organized at the Christ the King Parish Hall, at 11 am on Tuesday.

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