Court of Appeal restores GN Savings and Loans licence in landmark ruling
The Court of Appeal has unanimously restored the operating licence of GN Savings and Loans Company Limited, overturning both the Bank of Ghana’s original revocation decision and the High Court ruling that had upheld it.
A three-member panel of the appellate court quashed the earlier decisions on the grounds that the revocation of the licence was unfair and unreasonable.
By the same judgment, the court directed the receiver to hand over possession, management, and control of the company’s assets and operations back to its shareholders.
The ruling brings to a close a legal battle that has spanned several years, tracing its origins to the banking sector cleanup exercise carried out under the Bank of Ghana’s then-Governor Dr Ernest Addison.
GN Bank Limited had been reclassified as a savings and loans company and renamed GN Savings and Loans Company Limited on January 4, 2019. Seven months later, on August 16, 2019, the Bank of Ghana revoked the institution’s licence and appointed Eric Nana Nipah as Receiver.
Groupe Nduom, the owners of the company led by Dr Papa Kwesi Nduom, moved swiftly to challenge the revocation in the High Court in Accra. However, on January 24, 2024, Justice Addo upheld the revocation, prompting the owners to escalate the matter to the Court of Appeal.
The appellate court’s unanimous decision to quash both the revocation and the High Court ruling represents a significant legal victory for Dr Nduom and the shareholders of GN Savings and Loans, and is expected to reignite broader conversations about the manner in which Ghana’s banking sector cleanup was conducted.
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