By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Pan-Africa lender Ecobank Transnational Incorporated (ETI) will today (Monday) March 03, 2014 hold and extraordinary general meeting (EGM) to reconstitute its board.
On January 09, 2014, Nigeria’s Securities and Exchange Commission (SEC) had advised the pan-Africa bank, to appoint a substantive board chairman who will lead the effort to attain an improved governance climate in the bank.
Nigeria’s SEC had done an investigation into the alleged breaches and corporate governance practices within the organisation.
SEC had said appointing a chairman to the board of the pan-Africa bank should be a result of a credible selection process. ‘’Such a chairman also needs to have the relevant experience and skills to guide this remedial plan. The chairman should have integrity, independence and should not have the potential for conflict of interest in the discharge of the role,’’ SEC said.
Also, the commission said steps should be taken to ensure that ETI has board members and management team that have the requisite skills and experience to oversee or manage its affairs at this time.
Apart from reconstituting its board, SEC advised ETI to adopt an action plan to implement the commission’s recommendations on governance improvement of the bank.
ETI at the EGM will amend its Articles of Association to include the following: provision on mergers, acquisitions and disposals. Others are reduction of the maximum size of the board of directors, limitation of the tenure of directors and revision of the quorum for meetings of the board.
On Tuesday February 25, 2014 the pan-Africa lender held an emergency board meeting at its headquarters in Lome, Togo prior to Monday’s EGM.
InvestAdvocate gathered that the emergency board meeting was as a result of today’s March 03, 2014 Nigeria’s SEC ordered EGM.
Also, InvestAdvocate gathered the meeting was in connection with a letter written close to three (3) weeks ago to Andre Siaka, chairman of the pan-Africa lender by four (4) executive directors of the bank who are not up for re-election at the forthcoming EGM seeking that Thierry Tanoh, the chief executive officer (CEO) of the bank to should step down in order to resolve a lingering leadership crisis in the bank.
Last week Reuters had reported that biggest shareholder in ETI South Afirca’s Public Investment Corporation (PIC) had expressed concerns about Thierry Tanoh as chief executive officer of the bank.
Reuters reported that Daniel Matjila, PIC Chief Investment Officer in a phone interview said they have reservations about Tanoh and concerned about his performance.
We will monitor developments as regards the EGM and present you the outcome.
