.L-R; Company Secretary/Legal Adviser, Abbey Mortgage Bank Plc, Geoff Amaghereonu; Chairman, Board of Directors, Mazi Emmanuel Kanu Ivi; Managing Director/CEO, Mobolaji Adewumi; and Executive Director Treasury and Business Growth, Oladipupo Adeoye, during the bank’s Extraordinary General Meeting (EGM) in Lagos
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Shareholders of Abbey Mortgage Bank Plc, at an extraordinary general meeting of the company in Lagos, have approved a reduction of the company’s issued share capital by N3.541 billion.
The focus of the EGM was for the shareholders to pass a resolution approving the utilization of a portion of the share premium account to offset historically accumulated losses, enabling the bank to complete its financial housekeeping and resume the payment of dividends.
This significant decision, which was proposed by the board of directors, is expected to bolster its drive to create sustainable value for both shareholders and investors.
At the EGM, the shareholders considered and passed the following resolution as a special resolution:
“That subject to the confirmation of the court, the company’s issued share capital (including for this purpose its share premium account) be reduced by N3.540,633,102 which has been lost or otherwise unrepresented by available assets and that the credit arising from the reduction be used to eliminate the retained loss in the company’s audited financial statements as at December 31, 2022.
That the directors of the company be authorized to do all such things and acts and to approve, sign execute all documents which in their opinion may be necessary, expedient, or appropriate to effectuate, implement, and carry out the resolution including without limitation to seek confirmation from the Federal High Court.”
Speaking at the meeting, the Chairman of the company, Mazi Emmanuel Kanu noted that a review of Abbey Mortgage Plc’s financial statement for the year ended 31st December 2022 established a deficit of N3.541 billion as accumulated permanent losses from legacy transactions.
He explained that the balance sheet restructuring proposed would not affect the company’s issued share capital or regulatory capital but would result in a reduction of the credit balance in the company’s share premium account.
He also noted that the shareholder’s funds would remain unchanged, adding that it would not impact the company’s creditors but rather pave the way for shareholders to receive dividends out of the company’s future profits.
Kanu added that in terms of mechanics and structure, the company’s board of directors is proposing a reduction of N3,540,633,102 from the company’s share premium capital account of N5,117,137, 249.90 under the provisions of sections 131and 132 of the Companies and Allied Matters Act 2020.
The Managing Director of the company, Mobolaji Adewumi, said, “We are immensely proud of the journey we have undertaken, and the support of our shareholders has been instrumental in our success. This momentous step is a testament to our resilience and sustainable growth focus.”
“As we look forward to a brighter future, Abbey Mortgage Bank Plc plans on the continuous delivery of exceptional financial services and creating value for our shareholders.
“The bank is confident that this will strengthen its position in the industry and open up new avenues for growth aqnd more success stories.”
In 2022, the company’s audited financial results for the full year ended December 31, 2022, showed impressive performance across major indices.
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