The Court of Appeal has unanimously restored the operating license of GN Savings and Loans Company Limited.
In a ruling delivered by a three-member panel, the second-highest court quashed the earlier decision of the High Court, which had upheld the revocation of the company’s license. The Appeal Court described the revocation as unfair and unreasonable.
By this judgment, both the Bank of Ghana’s decision to revoke the license and the High Court’s ruling that affirmed it have been set aside.
The Court further ordered the Receiver to hand over possession, management, and control of the company’s assets and operations to the shareholders.
Background
On January 4, 2019, GN Bank Limited was reclassified as a savings and loans company and renamed GN Savings and Loans Company Limited.
Seven months later, on August 16, 2019, the Bank of Ghana (BoG), under the governorship of Dr Ernest Addison, revoked the company’s operating license and appointed Eric Nana Nipah as Receiver, as part of the banking sector clean-up exercise.
That same month, Groupe Nduom, the owners of GN Savings and Loans Company Limited, led by Dr Papa Kwesi Nduom, filed a suit at the High Court in Accra challenging the revocation of the license.
On January 24, 2024, Justice Addo upheld the revocation of the license.
It is this High Court judgment that was challenged by the owners of GN Savings and Loans Company Limited, and which has now been quashed by the Court of Appeal.
Editor:
Obiri-Yeboah
