Maravi

(LUSAKATIMES) Shareholder file injunction against Finance Bank takeover

Shareholder file injunction against Finance Bank takeover
Tuesday, December 14, 2010, 19:38
By LusakaTimes

Five shareholders of the seized Finance Bank Ltd have filed an injunction in the Lusaka High Court seeking to restricting the takeover of the financial institution by the Bank of Zambia.

Finsbury Park, Clarkwell Limited, Job Albert T. Samuel, Estate of Late Pat B. Puta and Patrick Chamunda have filed that the move by the Central Bank to take possession of Finance Bank is in breach of the provision of the Banking and Financial services Act.

According to a statement of claim in the Lusaka High Court, the five shareholders say the action was meant to deprive them of their interest in the institution.

Lusaka High court judge Philip Musonda has asked parties in the matter to file in written submissions by Friday, December 17, 2010.

He stated that he would then deliver judgment 10 days from the date of receiving submissions. And Attorney General Abyudi Shonga has been co-opted as an intervener in the matter.

In his application, Attorney General Shonga said the matter raised wide issues of public interest and policy saying the general public was likely to be affected by the outcome of the case.

He stated that it would be in the interest of justice and policy that the State is included as an intervener in the matter.

Last week, Bank of Zambia governor Caleb Fundanga announced the takeover of operations at Finance Bank citing poor performance of the institution caused by its shareholders.

There has been growing speculations however that government plans to nationalize the Bank. Some account holders at the Bank have since closed their accounts due to uncertainties of the institutions future.

Labels: ABYUDA SHONGA, FINANCE BANK, PHILIP MUSONDA

posted by MrK @ 9:41 PM