The Court of Appeal has restored the operating licence of GN Savings and Loans Company Limited in a major legal victory that could reshape discussions surrounding Ghana’s banking sector clean-up exercise.
In a unanimous decision delivered by a three-member panel, the Court of Appeal quashed the earlier High Court ruling which upheld the revocation of the company’s licence by the Bank of Ghana. The appellate court held that the revocation was unfair and unreasonable.
The ruling effectively overturns both the Bank of Ghana’s 2019 decision to revoke the licence and the January 24, 2024 High Court judgment that supported the revocation.
The court further directed that the receiver appointed to oversee the affairs of the company should immediately hand over possession, management, control of assets, and all operational activities back to the shareholders of GN Savings and Loans Company Limited.
The dispute dates back to January 4, 2019, when GN Bank Limited was reclassified as a savings and loans company and subsequently renamed GN Savings and Loans Company Limited. However, just seven months later, on August 16, 2019, the Bank of Ghana, under former Governor Ernest Addison, revoked the company’s licence as part of the nationwide banking sector reforms.
Following the revocation, Groupe Nduom, led by businessman Papa Kwesi Nduom, challenged the decision in court, arguing that the action was unjustified. Although the High Court initially ruled against the company, the Court of Appeal has now overturned that judgment in what many legal and financial analysts are describing as a landmark decision.
The latest ruling is expected to spark renewed national debate over Ghana’s financial sector clean-up exercise, particularly concerning its impact on businesses, investors, workers, and customers who were affected during the reforms.
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