OVER 90% SBS SHAREHOLDERS APPROVE CONVERSION

MBABANE – The Swaziland Building Society (SBS) has received an overwhelming support from its shareholders, giving thumbs up to the proposed conversion into a fully-fledged commercial bank.
Yesterday, the SBS management reported that the organisation’s special general meeting (SGM) held last Friday was a success, as voting took place. This special general meeting marks a milestone towards its ambitions of becoming a commercial bank. During this meeting, the members were expected to adopt the special resolution, which is authorisation and approval of the conversion in terms of Section 67bis(3) of the Building Societies Act, 1962.

Requirements

The effect of the special resolution will be subject to the fulfilment of the conversion requirements, which includes obtaining all regulatory consents.The effect of the special resolution will further be that SBS will be converted from a building society governed by the Building Societies Act, 1962 and its Society Rules, into a public company registered and incorporated in terms of the Companies Act, 2009. Sharing the results of the voting that took place on Friday to determine if the society’s shareholders or members were up for the idea. SBS Board Chairperson Elijah Simelane reported that 94.67 per cent voted for the conversion.

Simelane reported that a total of 2 835 members attended the SGM. He stated that out of that, 2 684 voted in support of the conversion while, only 82 voted against and 47 obtained for abstaining. He mentioned that only 22 votes were spoilt. The chairperson clarified that inasmuch as the society had around 11 000 members, only 2 835 voted. He stated that the law allowed the process to continue with the members available on the day of the SGM provided that the institution had exhausted all means to inform all their members to attend. He said indeed they spread the word through every possible platform and gave ample time for members to attend the workshops and the SGM. Simelane highlighted that the total value of shares held by the members who voted for the conversion is E691 122 613.75, while the value for those who voted against is E5 861 303.55 and those who abstained, their shares are valued at E6 582 340.32.

Investments

The organisation has reassured its 11 000 members that their investments would remain secure throughout the transition from a building society to a commercial bank.The organisation availed redeemable shares to members who will remain undecided about the Conversion of SBS into a commercial bank after the SGM. Redeemable shares are a temporary investment instrument that will be valid for three months, allowing members to decide on the conversion.The chairperson stated that all these numbers exceeded the threshold placed by the regulators, being the Financial Service Regulatory Authority (FSRA) and the Central Bank of Eswatini (CBE).

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