Real reason Jaiz bank stopped new MD’s appointment – REAFFIRMING commitment to compliance with extant corporate governance rules and best practices, the board of Jaiz Bank on Sunday explained its decision to appoint a new managing director even as it.
In a regulatory filing at the Nigerian Stock Exchange (NSE) obtained by The Nation, Jaiz Bank, Nigeria’s premier non-interest bank and only publicly-quoted alternative finance institution, explained that the board considered several options in its succession plan for the current managing director, Mr. Hassan Usman.
Such options, it explained, informed the commencement of the appointment process for Mr. Muhammad Shaheed Khan to take over from Usman.
In the filing signed by Jaiz Bank’s Company Secretary, Mrs. Rukayat Dahiru, the board explained that it later decided to discontinue the appointment process.
Denying any rift among its directors, the bank said the board remained united on the pursuit of its strategic growth plan, noting the divergence in its directors’ responsibilities,
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It said: “The matter of succession for the current managing director was considered by the board as the expiration of his contract approached. Whereas some directors of the bank opined that a change of leadership was required to pursue some critical strategic goals, others believed otherwise given the very impressive performance of the current management.
“The board nonetheless resolved to appoint a new successor in person of Mr. Muhammad Shaheed Khan. This decision was however rescinded at a subsequent meeting of the board.”
Explaining further, the bank said the board’s resolution to rescind its decision and consequently discontinue the appointment process was in line with the terms and conditions of the offer letter issued to Khan since the offer was subject to relevant regulatory approvals.
According to the bank, the approval obtained from the relevant regulator modified the intention of the board as expressed in the conditional offer to Mr. Khan necessitating the board’s decision to discontinue the process of his appointment.
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The bank reassured the investing public and other stakeholders of its commitment to conducting its affairs within the stipulations of existing corporate governance codes for banks and public companies in Nigeria.
It pointed out that ongoing process to inject additional capital of some N3.3 billion in new equity funds, which was approved at an extraordinary general meeting last week in Abuja, evidenced the unity and commitment of the board and management to the long-term growth of the bank.
Jaiz Bank plans to raise about N3.3 billion through a private placement of 5.078 billion ordinary shares of 50 kobo each at 65 kobo per share.
It said: “The proposed capital raising exercise is an affirmation of the confidence the board and shareholders have in the prospects of the bank despite the economic uncertainties occasioned by the Covid-l9 pandemic.”
Explaining further, Managing Director, Jaiz Bank Plc, Mr Hassan Usman, said Khan had a three-year conditional offer from Jaiz Bank’s management which the Central Bank of Nigeria (CBN) did not accept.
“There was no firm offer to Mr. Khan. It was a conditional offer of three years contract. We were unable to get CBN to agree to the offer. The conditions were modified, the meeting agreed to stop the process and urge the current management of the bank to continue,” Usman said.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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