The Bank of Zambia (BOZ) has initiated legal proceedings against ZCCM Investment Holdings Plc and 546 other shareholders of Investrust Bank (currently in liquidation), seeking permission from the Lusaka High Court to serve court documents to shareholders residing outside Zambia.
The case, filed in the Lusaka High Court Principal Registry, concerns the Bank of Zambia’s desire to determine the share value for the stakeholders of Investrust Bank, which was declared insolvent earlier this year. As of April 2, 2024, it was confirmed that Investrust Bank had 547 shareholders, and BOZ now wishes to begin proceedings to resolve the issue of the bank’s share value.
In an affidavit supporting an ex parte summons for leave to serve court documents outside Zambia, Lyness Phiri Mambo, Director in the Prudential Supervision Department of BOZ, explained that the BOZ had taken possession of Investrust Bank on April 2, 2024, due to the bank’s insolvency. The action being sought by BOZ is grounded in the determination of the value of shares held by the bank’s shareholders.
The application further notes that some of the shareholders are based outside the jurisdiction of Zambia. Notably, the second respondent in the matter is based in the Federation of St. Kitts and Nevis, making it necessary for the court to grant permission for the issuance of documents to be served internationally. This legal step is critical for resolving the matter in the best interest of all parties involved.
“The board of the applicant (BOZ) resolved to take possession of Investrust Bank Plc (in liquidation) on April 2, 2024, on grounds that the said Investrust Bank Plc was insolvent. As at April 2, 2024, it was established that the shareholding of Investrust Bank Plc comprised 547 shareholders,” the affidavit states. BOZ further emphasizes that serving the originating process outside Zambia is essential for the final resolution of the matter.
BOZ insists that the respondents will not suffer prejudice as a result of this application and that granting leave for service outside the jurisdiction is in the interest of justice, ensuring that the proceedings are concluded fairly and efficiently.
The case highlights the importance of resolving the financial standing of Investrust Bank and ensuring that all shareholders, both local and international, are treated equitably in the liquidation process. The outcome of this case will likely have significant implications for the governance and shareholder rights of the bank.
