The Court of Appeal has ordered the reinstatement of the operating licence of GN Savings and Loans Company Limited, bringing a decisive turnaround in the long-running legal dispute over the financial institution’s regulatory status.
A three-member panel of the appellate court overturned an earlier ruling by the High Court which had upheld the revocation of the company’s licence. The Court of Appeal held that the decision to withdraw the licence was unjustified and unreasonable and consequently set aside both the original revocation and the High Court’s endorsement of it.
In addition to restoring the license, the court directed that the appointed receiver surrender possession, management, and control of all assets and operations back to the company’s shareholders. This ruling effectively ends the state-appointed receivership that had overseen the institution since its closure.
The institution, formerly known as GN Bank, was reclassified as a savings and loans company on January 4, 2019. However, on August 16, 2019, the Bank of Ghana Bank of Ghana revoked its licence as part of the broader banking sector clean-up exercise and appointed Eric Nana Nipah as receiver.
Following the revocation, the owner and leader of the Nduom Group, Dr Papa Kwesi Nduom, challenged the decision at the High Court in Accra. Although Justice Addo upheld the cancellation in January 2024, the Court of Appeal has now overturned that judgment, marking a significant legal victory for the company.
