Nearly seven years after its licence was revoked during Ghana’s banking sector clean-up, GN Savings and Loans Company Limited has secured a major legal victory at the Court of Appeal.
In a unanimous ruling, a three-member panel reportedly overturned the earlier High Court judgment that had affirmed the Bank of Ghana’s decision to revoke the company’s operating licence. The appellate court held that the revocation was unfair and unreasonable.
The judgment effectively nullifies both the Bank of Ghana’s decision to shut down GN Savings and Loans and the subsequent High Court ruling that backed the action.
The court also directed the receiver to return possession, management, control of assets and all related operations of the company to its shareholders.
GN Bank Limited was downgraded to a savings and loans company on January 4, 2019, and subsequently renamed GN Savings and Loans Company Limited.
However, on August 16, 2019, the Bank of Ghana, under the leadership of Dr Ernest Addison, revoked the company’s licence as part of the financial sector reforms and appointed Eric Nana Nipah as receiver.
That same month, Groupe Nduom, owners of GN Savings and Loans Company Limited led by Dr Papa Kwesi Nduom, headed to the High Court in Accra to challenge the decision.
On January 24, 2024, Justice Addo ruled in favour of the regulator and upheld the revocation of the licence.
Dissatisfied with that outcome, the shareholders appealed the decision, leading to the latest Court of Appeal ruling that has now set aside the High Court judgment.
