NDIC Begins Payment of Liquidation Dividends to Alpha Merchant Bank Shareholders

Alpha Merchant Bank NDIC

By Modupe Gbadeyanka

Shareholders of Alpha Merchant Bank Plc (in-liquidation) have been urged to come forward to proofs to verify their status in order to get paid liquidation dividends.

The affected investors are required to visit the offices of the Nigeria Deposit Insurance Corporation (NDIC), the official liquidator, across the 10 designated centres in the country.

A notice by NDIC disclosed that arrangements have been finalised for the payment of the “liquidation dividends to eligible shareholders of the bank with effect from February 3, 2020.”

It said in a notice that, “Accordingly, all persons listed as shareholders in the register of the bank (in-liquidation) should file their proof of claim with the liquidator, as NOTICE is hereby given that liquidation dividend is intended to be declared for eligible shareholders.”

In the disclosure dated January 24, 2020 and signed by the Director of Claims Resolution Department, it was also stressed that, “Liquidation dividends will continue to be declared to shareholders as and when assets of the closed banks are realized by the corporation.”

Business Post gathered that Alpha Merchant Bank, which had Mr Jimi Lawal as its Managing Director, commenced operations on June 6, 1988 with a seven-member board and a issued share capital of N6 million, which increased to N15 million in August 1989 through bonus issue to all shareholders, which.

However, the lender got into trouble as a result of ownership and control crisis, especially the mode of payment of the initial paid-up capital of N6 million by some shareholders.

The ownership and control crisis polarised the board to the extent that it could not operate as a team. Board oversight of management was very weak while the management was accused of withholding vital information from the board, engaging in unprofessional and unethical practices as well as dissipation of the bank’s resources.

According to what Business Post gathered, one of the main issues was the acquisition of Banque Internationale Pour L’ Afrique Occidental (BIAO) shares in the defunct Afribank Nigeria Plc.

Some of the aggrieved directors of Alpha Merchant Bank claimed others on the board used the sum of $16 million of bank’s fund to acquire Afribank shares for their personal benefit and a petition was filed to the Central Bank of Nigeria (CBN) to look into the matter.

Also, the bank’s public offer of 50 million shares in May 1992 generated a controversy, which warranted regulatory intervention.

Others who waded into the management crisis of the defunct financial institutions were the late HID Awolowo and the present Awujale of Ijebuland, Oba Sikiru Adetona.

Below are NDIC offices shareholders of the defunct Alpha Merchant Bank Plc can go for verfication

NDIC Alpha Merchant Bank

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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