19 December 2012

Zimbabwe: RFHL Founders Fight Capital Bank

RENAISSANCE Financial Holdings Limited three co-founders have filed an urgent chamber application at the High Court seeking to block Capital Bank Corporation Limited's extraordinary general meeting set for this month-end.

Capital Bank last week issued a notice to RFHL and the National Social Security Authority, inviting them to attend the extraordinary general meeting on December 31 to pass resolutions to authorise a rights issue.

Once approved, new shares would be allotted and NSSA, well positioned to exercise rights to take up the shares, would inevitably consolidate its disputed control of the Capital Bank Corporation.

In this case, the RFHL co-founders Messrs Patterson Timba, Dunmore Kundishora and Ms Clementine Sibve are seeking an interdict to stop Capital Bank and NSSA from convening the EGM pending the finalisation of the matter.

There are fears that the meeting could result in the alteration of the Capital Bank's shareholding structure that might negatively affect the trio. The trio also feels that the imminent EGM would result in NSSA increasing its ownership in a disputed asset and if that happened, their right to recourse under the law would be violated.

In their application, they also want the Registrar of Companies interdicted from accepting any annual returns, Form CR14, CR2 and any other documents required to be filed by Capital Bank Corporation in terms of the law.

The RFHL co-founders argue that the meeting should not be held until the case challenging NSSA's ownership and control of Capital Bank Corporation, which is before the Reserve Bank of Zimbabwe, is determined.

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