The six-year relationship between the two, revolving around a P150 million investment by the shareholder, has soured in recent years following a decision by the BBS board to nullify a cosy agreement with Bifm Capital that guaranteed the firm fixed returns and other benefits.
Besides losing a stake in the demutualised BBS, the nullification of the previous fixed return agreement means Bifm Capital can no longer guarantee fixed returns to its clients.Further acrimony came with an August 24, 2011 AGM where society members voted out Bifm Capital's representatives on the BBS board, a position the two directors had held since 2006, after investing in BBS a year earlier. However, The Monitor investigations last week indicate that the redemption or paying out by BBS of Bifm Capital's P150 million shareholding and the attendant loss of a stake in the demutualised society are at the core of the conflict.
