Update [October 18, 2020] – Amhara Bank has managed to collect 4.7 billion birr paid up capital and 6.3 billion birr in subscribed capital. Reports suggest that in an event held on Oct 18, 2020, the bank’s organization committee has announced that they will table the next steps to fully establish the bank. The bank has more than 150,000 shareholders which makes is the largest share company in Ethiopia as well as one of the highly capitalized private banks in the country.
Amhara Bank S.C, a new bank under formation, has managed to collect 4 billion birr paid up capital from more than 145,000 shareholders. This makes the bank the largest company in Ethiopia interms of number of shareholders. The new bank under formation also managed to collect 5.3 billion birr subscribed capital.
The bank has postponed the deadline for buying shares to April 22 (ሚያዝያ 7) inorder to allow the diaspora community to buy additional shares. This means the number of shareholders will likely increase and this raises concerns on the bank’s formation. National Bank’s law requires the bank’s shareholders to have a general assembly meeting in the presence of DARO (Document Authentication and Registration Office) officials inorder to officially establish the bank. At least 51% of the bank’s shareholders have to be present in the general assembly to officially establish the bank. Since there is no meeting rooms or even stadiums which can accommodate at least 70,000 (50%) shareholders, this will create a challenge when the bank conducts it’s general and extra ordinary meeting which require more than 50% and 25% of the shareholders to be present.
It is to be noted that other bank’s which have more than 10,000 shareholders are having challenges when conducting their general and extraordinary meetings which require at least 50% of their shareholders to present in one specific location. Bank’s are having difficulty finding meeting rooms which can accommodate 5,000+ people. Most banks end up having their general assemblies in Millennium Hall or the new Intercontinental Addis Hotel.
National Bank of Ethiopia and other stakeholders should consider amending their requirements to have that many shareholders present in a single location, inorder to accommodate the establishment of others companies with large number of shareholders.
UPDATE – Amhara Bank S.C, Current Capital, Phone numbers, Address and share information