BoU Urged To Prioritize Supreme Court Ruling: Lawyers Slam Notice On Crane Bank’s Name Change

By Gad Masereka

City lawyers have raised objections to Bank of Uganda’s recent notice instructing the Uganda Registration Services Bureau (URSB) to alter the name of Crane Bank Limited, emphasizing that BoU should first comply with the Supreme Court ruling to return all assets to the bank’s owners.

The notice circulated by Bank of Uganda cited Section 7(1) (a) of the Financial Institutions Act, 2004, advising the removal of the word “Bank” from Crane Bank Limited’s name in accordance with the Supreme Court decision regarding the defunct bank’s legal status.

Legal experts in Kampala dismissed this move, highlighting that Bank of Uganda has yet to fulfill the Supreme Court’s directive to return all assets to Crane Bank shareholders and settle significant costs owed.

“One of Kampala’s top lawyers emphasized that BoU must prioritize the implementation of the Supreme Court’s ruling before delving into matters such as altering the name of Crane Bank Limited,” stated a report by The New Light Paper.

Furthermore, lawyers argued that Bank of Uganda lacks the authority to deregister Crane Bank Limited, warning of potential legal ramifications. They pointed out that BoU’s actions might exacerbate tensions following its loss in legal battles against Sudhir Ruparelia, a major shareholder in the defunct Crane Bank.

Crane Bank Limited, a longstanding entity under the Ruparelia Group of Companies, has been in existence since July 23, 1990, and was engaged in banking activities.

The Supreme Court ruling in July 2022 mandated Bank of Uganda to cover costs incurred throughout the legal proceedings and instructed the return of Crane Bank to its original owners. With the conclusion of receivership in January 2018, the court affirmed that the bank’s assets and liabilities had reverted to its shareholders.

In light of these developments, legal observers question the authority of Bank of Uganda to dictate changes to Crane Bank Limited’s name, considering the bank’s longstanding legal status and the court’s directives.