Banks DIH Limited to appeal high court ruling

Banks DIH Limited says it will appeal a High Court ruling that granted an an injunction barring the company from from implementing a 1 per cent  cap on shareholder voting power.

According to its website,  the three principal business functions of Banks DIH Limited are the production of beverages, food products and restaurant operations. A fourth, and the most recent has been in banking services following the acquisition of 51 per cent shares of Citizens Bank Inc. in December 1998.

At its annual general meeting over the weekend, the publicly traded food and beverage giant that was established in 1969,  had planned to amend its by-laws to cap shares purchase at 15 per cent, but Justice Sandil Kissoon Friday, granted an injunction barring the company from voting on the motion to amend.

Banks DIH Limited chairman and managing director, Clifford Reis, told shareholders the company will appeal Justice Kissoon’s decision.

“At the close of the register for this annual general meeting today, the votes on the By-Law No 8 cannot proceed because Justice Kissoon has restrained us from doing so. And as a law abiding and responsible corporate citizen, we will comply with the judge’s order, however, the company proposes to appeal this matter to the Full Court for the discharge of this injunction,” he said.

Guyana Americas Merchant Bank Inc and Beharry Stockbrokers Limited filed the action against Banks DIH, with Reis indicating that the Beharry company is not a Banks DIH shareholder.

Reis said Banks DIH, which has become a trusted household name in Guyana, must remain a company owned by regular citizens – teachers, doctors, nurses, farmers, and vendors – and not big companies.

“And so we ask this question today, what does it say about a company, when thousands of people across generations see it as a part of their story. It says trust. It says belonging. It says shared destiny. It says do not sell your shares. This is why Banks DIH Limited is often described as a family company because it truly is,” Reis said.

Reis said when he was appointed Chairman of Banks DIH in 1989, there were 7,100 shareholders and that figure has increased to 15,558 with the company looking to increase it further to 20,000 shareholders.

“When I was appointed chairman of this company in 1989 we had 7,100 shareholders. Today, we have 15,558 – an increase of 8,455 or 119 per cent more. The target now for us is 20,000. We want to see 20,000 shareholders in this company– drivers, civil servants, farmers, and teachers. We want to see 20,000 small shareholders own this company. That is the legacy we want to follow with Peter D’Aguiar,” he said.

A group of “concerned” shareholders, in a paid advertisement, said at a time when dividends have not been fully paid, and in the absence of a third interim dividend in 2025, the board of Banks DIH Limited is looking to limit shareholders’ influence.

But Reis pointed out that a dividend payment of GUY$0.65 (One Guyana dollar=US$0.004 cents)  per share was paid to all shareholders on May 15, 2025. A second dividend payment of 65 was paid on October 2025 and a third dividend payment of $1.70 per will be paid for January, 2026.

“The total dividend paid to our shareholders during this year was three dollars per share unit and this resulted in a cost to the company of GUY$2.550 billion, as compared to GUY$2.210 billion previous year, and that’s an increase of GUY$340 million or 15.4 per cent.

“My fellow shareholders, we made that commitment that we would pay a minimum of 25 per cent of the net profit in dividend payments. That target was achieved with a total of GUY$2.550B or 25.9 per cent of the net profit of GUY$9.8 billion.

Reis noting that it is the company’s intention to increase the percentage to 30 per cent, said Banks DIH for the last 20 years, has paid three dividends per year, and it will continue to do so.

He said notwithstanding the payment of the dividends, company’s expansion programmes were funded from internal cash flow without the need to borrow funds or issue any additional shares.

Banks DIH recorded profit after tax of GUY$9.8 billion for the year 2025 – representing an increase of 2.3 per cent. The before tax profit was GUY$13.7 billion as compared to GUY$13.4 billion in 2024, thereby increasing by just over three per cent.

The company generated revenue of GUY$47.3 billion. (CMC)

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