FBN Holdings Plc has cancelled its annual general meeting (AGM), rescheduled to be held on August Tuesday, September 3, 2024, indefinitely, amid a recent legal battle with shareholder.

The parent company of First Bank of Nigeria Limited announced this in a statement on Monday, August 26, signed by its secretary, Adewale Arogundade.

It said, “Notice is hereby given that the 12th Annual General Meeting (AGM) of the members of FBN Holdings Plc, fixed to hold virtually and 22nd of August and re-scheduled to Tuesday, September 3, 2024, at 10 a.m. to consider and if thought fit, approve the accounts, declare  dividend, authorise the company to undertake capital raising of up to N350 billion, and other ancillary matters is hereby cancelled.”

The bank added that further information would be provided in due course, as appropriate.

The parent company of the oldest Nigerian bank did not give the reason for the cancellation, however, the bank has been in legal battles with some shareholders, threatening its holding structure for the second straight year.

A Federal High Court in Lagos state had halted FBN Holdings‘ 12th AGM scheduled for August 22, at the request of shareholder Tohir Folorunsho Ismaila.

The meeting was prevented from holding either virtually or otherwise, pending the determination of a motion for interlocutory injunction.

Justice Akintayo Aluko gave the order on August 13, 2024, after hearing a motion ex-parte filed and moved by Taiwo Osipitan with Olayemi Badewole and Adetola Ogunlewe for Ismaila, the petitioner.

FBN Holdings is the sole respondent in the suit marked FHC/L/CP/1428/2024, according to reports.

The legal battle is the latest of a growing list of shareholders standing in the way of FBN Holdings’ crucial annual meeting.

Rescheduled to September 3 according to an earlier notice by the bank to the investing public, the AGM was to be held to get shareholders’ approval for an N350 billion capital raise following the Central Bank of Nigeria (CBN) mandatory banks recapitalisation.

FBN Holdings had earlier in April announced plans to raise capital through the issuance of shares via a public offering, private placement or rights issue in the Nigerian capital markets to meet CBN’s minimum capital requirements of N500 billion for banks with international operating licences.

The bank had a similar fate last year when shareholders kicked against its decision to hold a virtual session.

Some of the shareholders questioned why the bank planned to avoid a physical meeting bearing in mind the crucial agenda expected to be reached at the AGM.

This led to some minority shareholders’ rallied support for FBN Holdings to hold its AGM.

The chairman of the Trusted Shareholders’ Association, Mukhtar Mukhtar, led the protest at the bank’s headquarters in Lagos in support of the bank, The ICIR reported.

At this year’s AGM, shareholders are supposed to approve a fixed amount of N50 million each as directors’ fees for the financial year ending December 21, 2024, and N63.7 million as the fee for the board chairman, Femi Otedola, whose approval was granted during last year AGM.