[ 2015-01-29 ]

SEC invites HFC Bank
The two non-executive independent directors of HFC
Bank, who are reportedly being pursued by SSNIT to
resign from the Board, may soon make headway on
the issue of the alleged Insider Trading by
Republic Bank of Trinidad and Tobago (RBTT), as
they prepare for a hearing on the matter today.

BUSINESS GUIDE has gathered that the directors
have been invited by the Securities and Exchange
Commission (SEC) today, Thursday, January 29, 2015
for a hearing in a bid to address the issues.

According to a letter intercepted by this paper,
Muriel Edusei and Francis Koranteng had lodged a
formal complaint with SEC a couple of weeks ago to
investigate the alleged Insider Trading by RBTT
and publish the findings.

“We believe very strongly that this issue will
be put to rest if you could conduct investigations
and publish the findings as soon as practicable
to

protect the integrity and enhance the confidence
that the public and investors have in our capital
markets and public institutions.”

In response to extensive newspaper publications by
the two board members, the Director-General of
SEC, Adu Anane Antwi on 12th January, 2015 granted
interviews on some media platforms stating that
the two directors had not lodged a complaint with
SEC over the alleged Insider Trading by RBTT,
among others.

“We are therefore, as suggested by your good
self, formally lodging a complaint in

our capacity as independent directors and
shareholders,” the directors stated in a letter
to Mr. Adu Anane Antwi.

It would be recalled that a recent ruling by the
Supreme Court asked HFC Bank to first lodge a
complaint with the Securities and Exchange
Commission over the alleged Insider Trading by
RBTT instead of resorting to the court.

But according to the letter, recent efforts by HFC
Bank to bring the issue of the alleged Insider
Trading to board meetings had been frustrated.

“We have tried to hold three board meetings but
the appointees of Republic Bank, Trinidad and
Tobago and Social Security and National Insurance
Trust (SSNIT) have frustrated the holding of these
meetings by not attending to form a quorum.”

Accusation of insider trading has been leveled
against RBTT which became a legal tussle between
HFC Bank and RBTT that has not been resolved.
Insider Trading is a criminal offence.

The two non-executive independent directors have
therefore cautioned the HFC Bank Board not to turn
a blind eye in view of shareholder interest as the
bank is duty bound to establish the veracity of
the allegation.



Executive Directors

It is believed that SSNIT’s objection to the
number of executive directors on HFC Bank Board
has been one of the thorny issues between the two
entities which has culminated into the requisition
of an Extraordinary General Meeting (EGM) by
SSNIT.

While SSNIT is of the view that the current mix of
executives to non-executives is not optimal for
the effective management of the Bank, HFC Bank
holds a contrary view.

SSNIT is seeking to use the EGM to review the
Board to ensure broad representation by
non-executive directors.

However findings of an independent research
conducted into the issue and published below seems
to uphold the position of HFC Bank.

Source of Data: 2013 Annual Reports

Meanwhile, the Acting Secretary of HFC Bank has
announced that the EGM, which was expected to be
held on Tuesday, 27th January 2015 at Christ the
King Parish Hall in Accra, has been postponed.

The notice said the postponement followed the
filing of an application for Motion for Stay of
Execution pending appeal.

Sources close to the bank said the application was
filed by a shareholder.

Source - Daily Guide

... go Back