New Management ADB MD’s fate in limbo

ADB The managing director of ADB will be determined by new board

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play Daniel Aseidu
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Reports reaching Pulse Business says the fate of the Managing Director of the Agriculture Development Bank (ADB), Daniel Aseidu hangs in the balance as a new board will be constituted soon to run the affairs of the bank.

An extra Ordinary General Meeting was convened on Friday, June 23 2017.Also the bank has effected changes to its regulations.

Per the new regulation government which hitherto had the power to elect all members unto the board has been restricted to three.

Private shareholders with more than 10 percent shares in the bank would also be represented on the board.

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The amendment of section 74 of the company’s regulation became necessary due to the floating of the banks shares on the stock exchange.

The move has allowed private investors to acquire shares and therefore need representation on the board.

BelStar Capital Limited, which has about 34 percent shares in ADB pushed for the convening of the Extra Ordinary General Meeting.

The Deputy Managing Director, Patrick Kinsley-Nyinah told Star Business’ Osei Owusu Amankwaah that the meeting was necessary to ensure that the interest of private shareholders are catered for on the board.

He added that, a new board will be constituted soon to determine the fate of the current managers of the bank.

Board Chairman of the bank, Nana Soglo Alloh IV told Starr Business the changes to the board will not affect the operation of the bank.

READ ALSO: ADB allays fear over fire outbreak at new office

ADB listing

After a long tussle, ADB commenced trading on the Ghana Stock Exchange in December 2016.

It successfully raised about GHc325.7 million in its Initial Public Offer (IPO).

With a total applicant of 405, ADB sold out 122,937,718 ordinary shares with majority going to the institutional shareholders.

The Retail applicant’s total shares bought represents 98.77percent of the shares sold out by ADB while the five institutional applicants or shareholders represents 1.23%.

According to the bank, though the Retail applicants in percentage terms seem to be in the majority, they had a total of a little above 5 million shares as the bank raised a little above GHc13.5 million from them.