Registrar explains shrinking of union bank’s shares
GTL registrar has provided explanation to some shareholders’ complaints about the reduction in the number of shares they hold in Union Bank Plc without their permission.
Specifically, some shareholders, led by one Mr. E.O. Orefuye, have complained to The Guardian’s Capital Market Complaint/Feedback desk that the number of the shares they acquired in Union Bank Plc were reduced and that they were not privy to the decision to reduce the number of their share holding in the bank.
For example, Orefuye said his own total units of more than 23,000 ordinary shares were shrunk to only 4,000 without justification.
Based on the complaints, The Guardian contacted GTL registrar, which handles Union Bank register of shareholders.An official of the firm, Mr. Olorunyomi Iwanefu said the decision to tamper with the number of shares each shareholder has in the bank was done after the statutory due process was strictly adhered to.
According to him, a court ordered meeting of Union Bank of Nigeria Plc’s shareholders, which was held on September 30, 2011, deliberated on the issue of Union Bank’s recapitalisation exercise, which was in line with the Central Bank of Nigeria’s directive and the share capital of Union Bank of Nigeria Plc was reconstructed at a ratio of 3:16 basis, that is 3 new shares for every 16 old shares held.
He said the total shareholding of the shareholder (Mr. E.O. Orefuye) on the records of GTL before the reconstruction was 22,064 units and after reconstruction, his current shareholding is 4,137 units of ordinary shares.
Iwanefu, while saying the transaction was done in line with the investment law in the country, advised any shareholder, who has complaints to feel free to contact them (registrars) for solutions to such complaints, adding that the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) will not permit any shareholder in the equities market to be cheated.
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