RFHL founders face the boot

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RENAISSANCE Financial Holdings Ltd (RFHL) founders ––Patterson Timba, Dunmore Kundishora and Clementine Sibve –– could lose their 16% shareholding in Capital Bank should they fail to follow their rights in a US$20 million rights issue to recapitalise the financial institution.

Report by Chris Muronzi

This comes after the High Court dismissed an urgent application to stop a Capital Bank Corporation Ltd extraordinary general meeting (EGM) slated for end of month.

The RFHL founders had argued the EGM should not be held until the case challenging National Social Security Authority (Nssa)’s ownership and control of Capital Bank Corporation, before the Reserve Bank of Zimbabwe, was determined.

The Reserve Bank dismissed an application to set aside the Nssa transaction.

In his ruling Gono said: “Appellant has not sued the directors but the curator and the National Social Security Authority. The alleged irregularity and I make no effort to deal with that therefore it is irrelevant if it occurred, and if it did, it did so against the interest of the shareholder of RMB, that is RFHL.

“Indeed, rationale of Section 183, as confirmed by the directors without reference to the general meeting of shareholders. As a result, the view I have taken on behalf of RBZ is that the appellant is barking up the wrong tree. He is not the wronged party and has no locus standi in judicio.”

New shares would be issued once shareholders approve the motions put to them at an EGM, a development that will see Nssa shoring up its shareholding in Capital Bank, currently at 84%, and RFHL’s shareholding in the financial institution diluted.

Timba, Kundishora and Sibve had sought an interdict to stop Capital Bank and Nssa from convening an EGM pending the finalisation of the matter.

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

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