…We Never Fight Over Appointment

The attention of the bank has been drawn to some online news platforms purporting a deep rift in the board of Jaiz Bank. Jaiz Bank Plc, the premier non-interest bank in Nigeria is putting it straight for the attention and benefit of all regulators, bankers, shareholders, customers, investors, strategic stakeholders and the general public that there is no rift among its board as claimed by unverified report of some media organisations.

JAIZ Bank has vehemently disassociate itself from rumours of a rift among its board members over a succession plan. The bank said the board nonetheless went ahead to appoint Muhammad Shaheed Khan as the successor to the outgoing MD.

Mr Khan’s appointment sparked off a controversy in the board, resulting in the decision being reversed at a subsequent meeting. Since Mr Khan’s appointment was subject to approval by regulatory authorities, including the Central Bank of Nigeria, the bank said the board’s resolution to reverse its decision and consequently discontinue the appointment process was in line with the terms and conditions of the offer letter issued to him.

The bank said the approval obtained from the relevant regulatory authorities materially 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.

The bank, however, assured its customers, shareholders, investing public and other stakeholders of the commitment of the board to continue conducting its affairs within the stipulations of existing corporate governance codes for banks and public companies in Nigeria.

To underscore its claim, the bank cited the approval of the proposed placement of ordinary shares at an extraordinary general meeting on October 28, 2020, in Abuja, chaired by the chairperson of the board of directors, Umaru Mutallab.

The bank said the proposed capital raising exercise was an affirmation of the confidence the board and shareholders have in its prospects, despite the current economic uncertainties occasioned by the COVID-19 pandemic.

On the disagreement over the appointment of a successor to the incumbent managing director, the bank said the issue was considered by the board as the expiration of his contract was approaching.

The bank said that while some directors were of the opinion that a change of the leadership was required to pursue some critical strategic goals, others were of the view that he should continue, given the very impressive performance of the current management.

This is according to press release issued as to that effect, signed by the company’s Secretary, Mrs. Rukayat Dahiru, and seen by reporter. The appointment of three new directors to fill existing vacancies as well as furthering the Bank’s succession plan have been approved by the Central Bank of Nigeria and forwarded to the Nigerian Stock Exchange.

As a testimony to the cordial relationship in the board room, the press release revealed that the Board and Shareholders of the bank just commenced the process of raising additional equity of N3.3 billion through the private placement of 5,076,923,077 ordinary shares of 50kobo at 65kobo per share

The Bank affirmed that the matter of succession for the current Managing Director was considered by the board as the expiration of his contract approached. However, the bank was quick to assert that what transpired was just a “legitimate exercise of divergent opinions on a matter in the ordinary course of the Directors duties

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