The government is to meet with minority shareholders of the Guyana National Co-operative Bank (GNCB) to discuss acquiring their shares.
GNCB was recently bought by the National Bank of Industry and Commerce (NBIC) for US$14M.
Head of the Privatisation Unit (PU), Winston Brassington, told the handful of shareholders at yesterday's Annual General Meeting at Ocean View Convention Centre, that the PU is hoping to meet a representative body of shareholders as early as January 2003.
He said while the unit is not required to invite each individual shareholder, nothing in the legislation indicated that the national co-operative body could be deemed the representative of all co-op groups.
Brassington said it was therefore decided that every effort would be made to contact each individual shareholder, apart from placing an advertisement in the newspapers, alerting them about the meeting. Three hundred and twenty-seven co-operative societies and credit unions own the remaining 4.7% of the bank's shares.
According to Brassington, the unit is hoping to reach an amicable arrangement on a price. He also gave shareholders an update on the moves to finalise the bank's sale.
He said only the business aspects of GNCB were being sold and that GNCB would continue to remain a legal entity with a board of directors to administer its loan portfolio and other issues. But no funds would be available for shareholders since GNCB was required to service a debt by way of a debenture to government via the Consolidated Fund. This debt is to be paid with interest.
The AGM lasted approximately one hour and saw co-op shareholders openly disagreeing with their representative on the board.
The national body had made a request to have a new board-member instituted but this was not deemed possible under the Financial Institutions Act.
The meeting attended by the board of directors including the GNCB's General Manager, John Flanagan, saw the presentation of the director's report by board chairman, Mohamed Sattaur.
The report of the accountants verifying the bank's figures including a loss of $515M for 2001 was also presented to shareholders.