Post Views: 300 This is not the best of times for stakeholders, particularly the shareholders of Fortis Microfinance Bank Plc. The Nigerian Deposit In...
This is not the best of times for stakeholders, particularly the shareholders of Fortis Microfinance Bank Plc.
The Nigerian Deposit Insurance Corporation (NDIC) said in a statement on its website that it has concluded plans “to close the bank and its branches and pay the insured Depositors,” urging “all depositors of the bank to visit the bank’s branches.”
Such depositors, the statement said, will meet NDIC officials for the verification of their claims between Monday, February 4, and Friday, February 8, 2019.
The operating license of the bank, the only MFB, apart from NPF, listed on the Nigerian Stock Exchange, was recently revoked by the Central Bank of Nigeria (CBN).
Signs that all was not well with the bank first surfaced last August, when its interim management committee failed to file its audited financials for the full year 2016 and 2017, up to the second quarter of 2018, which it said in a statement, was being revalidated along with the full-year numbers.
A follow up statement by the company secretary, Victor Emerson to the Nigerian Stock Exchange (NSE), dated August 14, 2018, announced the resignation of its interim managing director, Mrs. Bunmi Lawson.
The statement said the CBN would appoint a new interim Managing Director to pilot the affairs of the IMC.
Recall that following the suspension of trading in its shares four months after the due date for filing of its December 31, 2016 report, the company on July 7, 2017, company wrote to tell the NSE it was awaiting approval of the CBN to go ahead.
The report, Emerson said, will be filed within the shortest possible time, following the suspension of trading in its shares along with Unity Bank Plc, Thomas Wyatt Nigeria, Multi-Trex Intergrated Foods, Golden Guinea Breweries and Deap Capital Management & Trust.
In a notice to dealing members (stockbrokers), the NSE said the decision is in line with the rules pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), which provides that;
According to the notice, “if an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will: (a) Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; (b) Suspend trading in the Issuer’s securities; and (c) Notify the Securities and Exchange Commission (SEC) and the Market within twenty- four (24) hours of the suspension.”
The NSE added that as a result of the suspension, shares of the six companies would remain suspended from trading and “will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.”
African Alliance Insurance Plc; Equity Assurance; Goldlink Insurance, Guinea Insurance; Sovereign Trust Insurance; Great Nigeria Insurance; and Universal Insurance Company.
Others are: Evans Medical and Ekocorp (owners of Eko Hospital); Resort Savings & Loans; and Union Homes Savings & Loans (subsidiary of Union Bank of Nigeria); and Fortis Microfinance Bank.
Also on the list are: Omatek Ventures, the only computer manufacturing firm listed on the NSE in 2008 and founded by late Mrs. Florence Seriki; as well as two chemical and paint makers- Premier Paints and African Paints; as well as Union Dicon Salt.