The Court of Appeal has unanimously restored the licence of GN Savings and Loans Company Limited after quashing a High Court decision that upheld the revocation of the company’s operating licence.
A three-member panel of the country’s second-highest court ruled that the decision to revoke the licence was unfair and unreasonable. Consequently, both the revocation decision and the earlier High Court judgment affirming it have been set aside.
The court further ordered the receiver to hand over possession, management, control of assets, and all operational activities of the company back 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.
However, on August 16, 2019, the Bank of Ghana, under the leadership of Ernest Addison, revoked the company’s operating licence as part of the banking sector clean-up exercise and appointed Eric Nana Nipah as receiver.
Later that month, Groupe Nduom, led by Papa Kwesi Nduom, challenged the revocation at the High Court in Accra.
On January 24, 2024, Justice Addo upheld the revocation of the licence. Dissatisfied with the ruling, the owners of the company appealed the judgment, which has now been overturned by the Court of Appeal.
