Court of Appeal orders restoration of GN Savings and Loans licence

The Court of Appeal has restored the operating licence of GN Savings and Loans Company Limited in a unanimous decision.

A three-member panel of the court quashed the earlier High Court ruling which had upheld the Bank of Ghana’s revocation of the company’s licence.

The appellate court held that the decision to revoke the licence was unfair and unreasonable.

By the ruling, both the Bank of Ghana’s revocation decision and the High Court judgment affirming it have been set aside.

The court also ordered the receiver to hand over possession, management and control of the company’s assets and operations to its shareholders.

GN Bank Limited was reclassified as a savings and loans company on January 4, 2019.

Following the reclassification, the company became known as GN Savings and Loans Company Limited.

On August 16, 2019, the Bank of Ghana, then led by Dr Ernest Addison, revoked the company’s operating licence.

Eric Nana Nipah was subsequently appointed as receiver as part of the banking sector clean-up exercise.

Groupe Nduom, owners of GN Savings and Loans Company Limited, led by Dr Papa Kwesi Nduom, challenged the revocation at the High Court in Accra.

On January 24, 2024, Justice Addo upheld the Bank of Ghana’s decision.

The company’s owners appealed against that ruling.

The Court of Appeal has now overturned the High Court decision and restored the company’s licence.