The defunct Capital Bank Ghana Limited, through its joint receivers, Vish Ashiagbir and Eric Nipah, has sued the former shareholders and directors of the bank.
It is the case of the Plaintiff that the former directors of the bank approved several loans and credit facilities to other companies, and made placements of funds to themselves and related parties, without the requisite collateral, which are in breach of the company’s policies, relevant banking regulations, and the Ghana Company law.
The Plaintiff also avers that investment certificates submitted by the shareholders and directors detailing investments in defined financial institutions, to the tune of GHC 52,300,000.00, which they indicated was to be used as top -up capital to obtain a class 1 banking licence, from the Bank of Ghana (BoG), were later classified as non-existent at their dates of maturity, and the said investments were never paid to the Plaintiff.
According to the Plaintiff, the records showed that as a direct result of the misgovernance of the defendants, and wilful breaches of banking regulations, as at 31st December, 2015, the defunct bank had a cumulative amount of approximately GHC482,000,000.00, as impaired and/or non-existent investment, which amount included the GHC 52,300,000.00 misrepresented to BoG as required capital for the grant of the requisite licence.
It is the case of the Plaintiff that, its former directors have by their actions, acted in breach of their fiduciary duties to the bank , under the Companies Code, 1963 (Act 179), and have caused serious financial loss to the Company as a result.
The Plaintiff among other reliefs is seeking a declaration that the shareholders and directors are in breach of their fiduciary duties to the Plaintiff under the Companies Code, 1963 (Act 179).
It is also seeking an order directed at the former directors, jointly and severally, for the payment of compensatory damages to the company.