AFRICAN Bank Investments Limited’s (Abil’s) brand new board faces a revolt from preference shareholders, after the latter argued the investment holding company’s new memorandum of incorporation failed to protect their rights.At a lively annual general meeting (AGM) on Tuesday, a representative for shareholders holding about 5-million of these shares suggested they might have no choice but to go to court to enforce their rights, as the new memorandum prejudiced them.In total, Abil has 13.5-million preference shareholders."We agree with the name change from bank to nonbank, but the new memorandum does not include our rights as preference shareholders," said one individual preference shareholder, who declined to be named. "They [holders of the 5-million preference shares] are saying at least incorporate our previous rights into the new memorandum."This comes after Abil was compelled to amend the memorandum to change its name to African Phoenix Investments, following the cancellation of...
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