Commerbank Shareholders Reject

Dividend Accra Ghana Commercial Bank (GCB), pressurised by shareholders, today declared its published 100 cedis dividend a share as an interim one. The GCB board, chaired by Mr. Samuel Kye Apea, bowed to the demands of the shareholders who swamped the El-Wak stadium in Accra for the bank's third annual general meeting. The bank announced 41.212 billion cedis slated for appropriations out of which a dividend of 16.5 billion cedis was proposed. The crowd, the biggest to attend any shareholders meeting, booed and jeered when the announcement of the 100 cedis dividend per share was made with some threatening to walk out. They called for a review to make them have "the satisfaction of being part of the bank." Mr. Apea said the bank fared no better than in 1995. Its net profit tax came to 41 billion cedis for this year compared with 43 billion cedis in 1995. He said a special dividend of 141 billion cedis was paid to government which was previously the sole shareholder. "The payment of this large amount reduced both the capital base and operational resources of the bank." Mr. Apea blamed the poor performance on adverse newspaper publications which fed on the bank's computerization programme and the unprecedented purchasing of large amounts of unauthorised cheques. He said the bank's board and management have taken remedial measures to prevent such lapses in future. Mr. Apea told the meeting that a strategic investor has been identified to buy 40 per cent instead of the intended 30 per cent of the bank's shares thus slashing government holdings to 19 per cent if the offer is accepted. This information attracted a lot of adverse comments from shareholders, some of whom described the move as neo-colonialism. "This amounts to putting the economy back into the hands of foreigners", one shareholder told the meeting. In response to the comments, Mr. Apea said the world is globalising both in banking and commerce and that the bank cannot remain in isolation. "The GCB should associate with progressive entities to be able to move forward," he said. Mr. Apea described a strategic investor as one who in addition to providing funding, offers management and technological expertise to an establishment. Five directors including Mr. Archibald Aponsah Tannor, Mr. Kwaku Gyasi-Twum and Mr. John Sey were elected into office. The rest are Mrs. Esi Sutherland Addy and Mr. Kwasi Afriyie Ansah. The bank enlisted on the Ghana Stock Exchange on February 26, 1996, drawing some 80,000 individuals into its fold. Government, however, owns 59 per cent with SSNIT having 7.9 per cent.