The Origins of NBA
By Don Mitchell CBE QC
National Bank was formed
as a company in 1984. It acquired Bank
of America's Anguilla Branch at The Valley in Anguilla in 1985. These
were both successful endeavours because a lot of people worked hard to make it
happen.
In
the forefront were the promoters. We
were Fabian M Fahie, Kennedy W Hodge, Conrad W Fleming, Ralph V C Hodge, Cecil Niles,
Timothy A Hodge, George Kentish, Albert S Lake, and myself. Edmund W Lawrence was recruited from St
Kitts to be the Banking Advisor. We all
signed the company’s memo and articles of incorporation and the Prospectus as
promoters of the company.
The
Government of Anguilla, under the leadership of Sir Emile R Gumbs, enthusiastically supported the
efforts of the promoters. The late Hon
Albena Lake-Hodge, Minister of
Education, insisted that a public company be formed. That would allow the participation of the
Anguillian public. The Hon Hubert
Hughes was Minister of
Finance. The Hon Franklyn Connor OBE
JP was Permanent Secretary
in the Ministry of Finance. Both provided invaluable guidance and assistance on
compliance with the legal requirements. The new company was registered. The Banking Licence was issued. There was a minimum of beaurocracy and red
tape. Government was issued 7,500 shares in the company. This was in exchange for Government's efforts
in the negotiations with Bank of America and for taxes and fees payable to
Government. Cabinet approved the
transaction on 7 February 1985. This
opened the way for the NBA acquisition of the Bank of America branch in The
Valley to proceed.
The
conversion of the Bank of America Branch in The Valley into a locally owned Bank would not have
succeeded without the whole-hearted support of Bank of America staff in
Anguilla at that time. Selwyn
Horsford, Valentine Banks, Icilma Vanterpool, Bernadine Horsford, Glenford
Richardson, Carol Morton, Barbara Simpson, Kathryne Richardson (now Connor),
Janice Carty (now Proctor), Elma Vanterpool, and Lindsay Richardson worked
all hours of the day and night to calm the fears of Bank customers about the
future. They projected the quiet
confidence that was essential to ensure that there was no drain on deposits
during the period of transfer.
The promoters had to raise EC$1,500,000 to have money to purchase the
branch. They decided to go to the public
for the funds. They reserved 80% for
Anguillian belongers and 10% for Government. They ensured that not more than 10% of the
shares were issued to non-Anguillians. The application list opened at 10:00 am on
Friday 1 February 1985. It was to have
closed five weeks later at 4:00 pm on Friday 8 March. But, because of the enthusiastic support of
the Anguillian public, the issue was over-subscribed within days by some 600
investors. Many persons who mailed in
their applications for shares were disappointed to learn that they arrived too
late. But, unfortunately, the rules did
not permit the promoters to issue more shares than the maximum that were stated
in the Prospectus. This enthusiastic vote
of confidence of the Anguillian public in the new venture encouraged everyone
to move forward to the closing on the agreement for the transfer.
The
Bank of America executives dealing with the promoters could not have been more
helpful. The acquisition by NBA of Bank
of America's branch in Anguilla was the friendliest of take-overs. William
Dafoe and Robert Alsop were the Bank of America officers who had the
main contact with the promoters in Anguilla. They ensured that the lawyers kept their
transactions as simple and as straightforward as possible. They came to Anguilla to sign the sale
documents for Bank of America on 7 March 1985.
The
officers of NBA played a major role in the negotiations and the completion of
the documentation for the purchase of Bank of America. They were Conrad Walton Fleming, the
first Chairman, and Ralph V C Hodge, the company's first
Secretary. The closing took place in the
foyer of the Bank's premises. Some
fourteen legal documents were signed and changed hands at that time in order to
effect the transfer from Bank of America to NBA. Photographers were present to
record "the closing". The
future of the new Bank was toasted with champagne as the new pioneer in banking
in Anguilla readied itself to serve the Anguillian public as of the 8 March
1985.
11 February 2005
