Belstar, Starmount sue BoG, Central Securities over ADB shares

Limited and Starmount Development Company Limited have sued the Bank Of Ghana and the Central Securities depository over the Central Bank’s decision to annul their shares in ADB Bank Limited.

In a suit sighted by Starrfmonline.com, the two limited liability companies through their lawyer, Nii Arday Clegg, among other requests, are asking the court to issue” a declaration that the Order of the 1st Defendant annulling the acquisition by the Plaintiffs, SIC-FSL and EDU Limited of all shares held by them in ADB and all transactions undertaken in respect of these shares was made without any law basis and is null and void.

“A declaration that the Order of the 1st Defendant for all shares acquired by Plaintiffs, SIC-FSL and EDC Limited in ADB which were previously held by the Financial Investment Trust (FIT) be restored to FIT, was made without lawful basis and is null and void.

” A declaration that the 1st Defendant’s finding that the Plaintiffs are unfit and improper persons to continue to hold shares acquired directly or indirectly in ADB is without any lawful basis and is null and void”.

A statement by the Central Bank announcing the annulment in June this year said: “It has come to the notice of the Bank of Ghana that Belstar and Starmount are affiliates, and unknown to the Bank of Ghana, they entered into agreements with SIC-FSL and EDC to acquire additional shares in ADB in its IPO. These agreements, in addition to the direct acquisitions by Belstar and Starmount, resulted in a direct and indirect holding by these companies of over 50% of the shares of ADB without the knowledge and approval of the Bank of Ghana and in breach of section 49 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930)”

The move by the Bank of Ghana came after Belstar Capital, Starmount Development company, EDC as well as SIC Financial Services Limited in March this year announced that they had pledged their shares, proceeds, entitlement and voting rights to Unibank, a leading local bank which has since been put into administration by the Central Bank.

Below are details of the statement of claim by the companies

Statement of Claim

The Plaintiffs claim is for: jointly and severally against the Defendants:

i) An order of injunction restraining tite Defendants front unlawful relations with the business of the Plaintiffs.

ii) An order of perpetual injunction restraining the I Defendant from unlawful interference with contractual relations between the 1st Plaintiff and SIC-FSL.

iii) An order of injunction restraining the 2 Defendant from freezing the shares of the Plaintiffs in ADB.



iv) An order of injunction restraining the Defendants from conspiracy against the business of the Plaintiffs.

y) Damages, including punitive damages for the Defendants’ unlawful

interference with the business of the Plaintiffs.

vi) A declaration that the Order of the 1st Defendant annulling the acquisition by the Plaintiffs, SIC-FSL and EDU Limited of all shares held by them in ADB and all transactions undertaken in respect of these shares was made without any law basis and is null and void.

vii) A declaration that the Order of the 1S Defendant for all shares acquired by Plaintiffs, SIC-FSL and EDC Limited in ADB which were previously held by the Financial Investment Trust (FIT) be restored to FIT, was made without lawful basis and is null and void.

viii) A declaration that the 1st Defendant’s finding that the Plaintiffs are unfit and improper persons to continue to hold shares acquired directly or indirectly in ADB is without any lawful basis and is null and void.

ix) A declaration that the 1st Defendants Order prohibiting the Plaintiffs, SIC FSL and EDC Limited from exercising the rights attached to their shares in ADB including voting rights, rights issue and the payment of any dividends in respect of these shares, was made without any lawful basis and is null and void.

x) A declaration that the Order of the 1st Defendant directed at the directors appointed by the Plaintiffs to immediately cease to be directors of ADB is ,without any lawful basis and is null and void.

xi) Any other Order deemed fit by this Honourable Court.

xii) Costs including lawyers’ costs.