The Bank of Zambia (BoZ) has moved the High Court to grant it permission to serve originating summons outside the stipulated timeframe to 547 shareholders of Investrust Bank Plc, currently in liquidation.
The summons aim to determine the share value of the bank’s stockholders.
The shareholders include prominent entities such as ZCCM Investments Holdings Plc and individuals residing abroad, including the Federation of St. Kitts and Nevis.
In an affidavit supporting the ex parte application, Lyness Phiri Mambo, a Director in BoZ’s Prudential Supervision Department, explained that the board resolved to take control of Investrust Bank on April 2, 2024, after determining that it was insolvent.
Mambo stated that at the time of liquidation, Investrust Bank had a diverse base of 547 shareholders.
Utilizing its authority under the Banking and Financial Services Act of 2017, BoZ now seeks to initiate legal proceedings to determine the exact value of shares held by these stakeholders.
Mambo noted that one of the shareholders, based in St. Kitts and Nevis, falls outside the court’s jurisdiction.
Therefore, BoZ requested the court’s permission to serve the legal documents internationally to ensure the matter is fully addressed.
“The service of the originating process outside jurisdiction is, therefore, imperative for the matter to be finally resolved between the parties,” stated Mambo.
Mambo contended that the application was made in good faith and essential to protecting the rights of all parties involved.
She submitted that granting the application would not prejudice the shareholders, as it simply enables the court to determine the share value.
The central bank urged the Lusaka High court to allow the matter to proceed without further delays, ensuring a fair resolution for all stakeholders involved in the liquidation of Investrust Bank Plc.
