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Ghana: EDRB Shareholders Question BoG Directive On Payment of Dividends

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Shareholders at the annual general meeting of Enyan Denkyira Rural Bank (EDRB) Limited have questioned the decision of Bank of Ghana (BoG) to community and rural banks not to pay dividends for the year ending 2019.

In April this year, the BoG gave notice to banks in the country not to pay dividends to shareholders for the 2019 and 2020 financial years because of the effects of the COVID-19 pandemic.

Going by the BoG’s decision, the EDRB refused to declare dividends for its shareholders for the year ending 2019.

At the meeting held last Saturday at Ajumako Owane the shareholders raised issues about the decision and asked whether officials of the BoG who took that decision thought through it with regards to its implications for the shareholders.

They also asked if those officials thought of not receiving certain allowances due them.

In the circumstances, the shareholders vehemently kicked against increment in allowances for the members of the Board of Directors of the rural bank.

Later in an interview with some of the shareholders, they were unanimous that “in spite of COVID-19, the bank declared profit, so we don’t understand why we should not be paid dividend but the directors should have their allowances increased.”

One of the shareholders, Mr Ebo Prah, who broached the discussion on the dividend, said in the interview that “the profit made for 2019 is a little bit higher than that of 2018, that is GH¢412,107 against GH¢400,190.”