Resolution to remove CAL Bank MD goes to the poll

Accra, June 5, GNA - Shareholders of CAL Bank would have to wait a little longer to know the fate of Mr. Frank Adu Jnr., the Managing Director, whose removal as a Director of the Bank was one of the major resolutions at the Extra-Ordinary General Meeting held in Accra on Thursday.

After shareholders gave their vote of confidence to the Managing Director thereby defeating the resolution to remove him from office by a simple majority, Mr Afare Donkor, the single largest individual shareholder of CAL Bank, who requisitioned the EGM to oust Mr. Adu Jnr, requested for a poll to determine the outcome.

The poll will place a value on the vote of each shareholder according to the number of shares held in the bank.

Mr. Donkor owns 11% shares in the bank while Social Security and National Insurance Trust (SSNIT) has 26%.

The results of the poll conducted by the National Trust Holding Company (NTHC) are not expected soon as the outcome would have to be verified by independent auditors.

Mr Donkor requested an extraordinary general meeting of the bank's shareholders to, among other things, remove Mr. Frank Adu as MD of the bank, re-instate himself as a member of the Board of Directors and increase the stated capital of the company by up to 100 million Ghana cedis.

He is also pushing for the appointment of three new directors including himself and the appointment of a new managing director and chairman.

Meanwhile, the election of Mr Donkor as a Director on the board is also to be determined by a poll.

SSNIT the largest shareholder in the Bank requested the poll, shortly after Mr Donkor was approved by shareholders as a Board Member.

Mr Donkor, who is Ghana's Ambassador to China, is a founding father of the bank and was at a point barred from sitting on the board of any financial institution. The decision has, however, been reversed. Mr Reginald Yofi Grant, whose name was among the three directors to be elected at the meeting, was dropped from the list on an amendment proposed by Mr Donkor.

Shareholders, however, refused to consider the nomination of Mr Archibald Aponsah Tannor because his name was not included in the notice of meeting circulated to shareholders.

The meeting, however, gave the nod to Dr. Kobina Quansah, former Managing Director of Barclays Bank, Ghana, to serve on the Board. Meanwhile, shareholders have approved the resolution to increase the stated capital by 100 million Ghana cedis in tranches by 2012. Sixty million Ghana cedis would be raised by December 2008 and thereafter by up to 100 million by 2012.

The resolution to authorize the Board to appoint a new Managing Director and new Chairman for the Board of Directors was dropped. Most of the shareholders, who spoke at the EGM, were in favour of retaining Mr Adu Jnr. as the Managing Director.

They maintained that CAL had seen improved performance under the tenure of Mr Adu Jnr. and removing him at this time would spell the doom of the Bank.

According to them, it was difficult to tell what the real intention of Mr Donkor was in seeking to remove Frank Adu as Managing Director. Mr Donkor said he was satisfied with the conduct and the outcome of the meeting and would patiently wait for the results of the poll. Mr Adu Jnr. said he would focus on moving the bank forward and growing shareholder value.