By Yusuf Alli, Managing Editor, Northern Operation

The management of Jaiz Bank has said there was no rift within its board but only legitimate exercise of divergent opinions.

It claimed that although initially the board agreed to appoint a new Managing Director, Muhammad Shaheed Khan, it later rescinded its decision.

The bank made the clarifications in a statement by its Company Secretary, Mrs. Rukayat O. Dahiru.

The bank said it is committed to “conducting its affairs within the stipulations of existing Corporate Governance Codes for banks and public companies in Nigeria.”

The statement said: “For the record, the bank will like to state that:  There is no rift in the board of the bank other than legitimate exercise of divergent opinions on a matter in the ordinary course of the Directors’ duties.

“As a testimony to the absence of a rift, the board and shareholders of the bank just commenced the process of raising additional equity of N33 billion (three billion. three hundred million naira) through a private placement of 5,076,923,077 (five billion. seventy-six million nine hundred and twenty-three thousand and seventy-seven) ordinary shares of 50kobo at 6Skobo per share.

Read Also: How fintech companies revolutionised banking

“The proposed placement was approved at an Extra-Ordinary General Meeting (EGM) held on 28th of October 2020 at the bank’s Head Office in Abuja under the Chairmanship of Dr. Umaru Mutallab FCA. CON.

“The proposed capital raising exercise is an affirmation of the confidence the board and shareholders have in the prospects of the bank despite the economic uncertainties occasioned by the Covid-l9 pandemic.”

On the choice of a new Managing Director for the bank, the statement said although the board initially agreed to hire Muhammad Shaheed Khan, the decision was later reversed.

It added: “The matter of succession for the current Managing Director was considered by the board as the expiration of his contract approached.

“Whereas some directors of the bank opined that a change of leadership was required to pursue some critical strategic goals, others believed otherwise given the very impressive performance of the current management.

“The board nonetheless resolved to appoint a new successor in person of Mr. Muhammad Shaheed Khan. This decision was however rescinded at a subsequent meeting of the Board.

“The Board’s resolution to rescind its decision and consequently discontinue the appointment process was in line with the terms and conditions of the offer letter issued to Mr. Khan since the offer was subject to relevant regulatory approvals.

“Incidentally the approval obtained from the relevant regulator 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.

“Jaiz Bank Plc assures its customers. Shareholders. investing public and other stakeholders that the Board of the Bank remains committed to conducting its affairs within the stipulations of existing Corporate Governance Codes for banks and public companies in Nigeria.”