The Court of Appeal has, in a unanimous decision, restored the licence of GN Savings and Loans Company Limited.
The ruling followed a decision by a three-member panel of the country’s second-highest court to quash the High Court judgment that upheld the revocation of the company’s licence, ruling that the revocation was unfair and unreasonable.
By the judgment, both the decision to revoke the licence and the High Court ruling affirming it have been set aside.
The court also ordered the receiver to hand over possession, management and control of the company’s assets and operations to its shareholders.
Background
On January 4, 2019, GN Bank Limited was reclassified as a savings and loans company and subsequently renamed GN Savings and Loans Company Limited.
Seven months later, on August 16, 2019, the Bank of Ghana (BoG), then under the leadership of Dr Ernest Addison, revoked the operating licence of GN Savings and Loans Company Limited and appointed Eric Nana Nipah as receiver as part of the banking sector clean-up exercise.
Later that same month, Groupe Nduom, owners of GN Savings and Loans Company Limited, led by Dr Papa Kwesi Nduom, challenged the revocation of the licence at the High Court in Accra.
On January 24, 2024, Justice Addo upheld the revocation of the licence.
It is this High Court judgment, challenged by the owners of GN Savings and Loans Company Limited led by Dr Papa Kwesi Nduom, that has now been quashed by the Court of Appeal.
