High Court upholds Republic Bank's objection

An Accra High Court presided over by Justice Justin Dorgu has upheld an objection by lawyers of Republic Bank to a suit initiated by Messrs Kwasi Asante and Alfred Nii Boi Bortey, two shareholders of HFC Bank.

The plaintiffs were seeking orders of the court to restrain Republic Bank from making a mandatory offer to all shareholders under the Takeover Code of the Securities and Exchange Commission (SEC).

Describing, initiation of the suit as premature, the judge ruled that the plaintiffs first had to exhaust the dispute resolution procedures prescribed by the Securities Industry Law before resorting to court action.

Another action initiated by two other shareholders of HFC Bank, Messrs Akwete Akita and Charles Martinson was previously also determined to be wrongly initiated in an earlier decision of another High Court Judge, Justice Samuel Aseidu, on 22nd August, 2014.

Mr. Robert Le Hunte, Director of Africa Operations of Republic Bank, commenting after the decision of the court said: "We are pleased that the High Court has upheld the objection to this suite; Republic Bank is committed to complying with Ghana laws.

"The submission of our mandatory offer to all shareholders under the Takeover Code of the SEC was a requirement Republic Bank has to comply with, and for which the bank had the approval of the Bank of Ghana."

He, therefore, assured all stakeholders in the Republic Bank of its long-term commitment to HFC Bank, and to contributing toward economic growth and development in Ghana and Africa through its investment programmes.