Shareholders of Cal Bank approve transfer of GH¢ 50m to help meet capital requirement

Shareholders of Cal Bank approve transfer of GH¢ 50m to help meet capital requirement
Source: Ghana | Charles Ayitey | JoyBusiness
Date: 17-12-2018 Time: 06:12:04:pm

Cal Bank gets shareholders’ approval to transfer GH¢ 50m of income surplus to its stated capital to help meet the new capital requirement set by the Bank of Ghana.

This was at an Emergency General Meeting (EGM) which saw shareholders unilaterally approve of the decision to make such a transfer.

The journey to meeting the stated capital started on May 3 when management of Cal Bank at an annual general meeting sought the approval of shareholders to transfer an amount of GHc250 million from income surplus to stated capital.

This process was completed with the bank’s capital remaining at Ghc350 million. Still being GHc50 million shy of the GHc400 million cedi minimum capital, the bank again had to go back to shareholders for yet another approval.

The Managing Director of the bank, Frank Brako Adu Jnr, said “Now this resolution is passed, we need the Central Bank to agree that the audited results are acceptable and then we register the increase at the Registrar General. Our focus won’t change. 

The whole process of capitalization at Cal Bank was that there was no injection of fresh capital. It was monies that were already in the bank that were differently categorized,” he stated.

Cal Bank did not pay any dividend to shareholders for the financial year 2017 as the bank seeks to meet the Bank of Ghana’s (BoG’s) minimum capital requirement.

According to the Bank, this may have a consequence of reducing the funds available for the bank's recapitalization before the December deadline.