Why Oando’s AGM Remained Suspended – SEC
The Securities and Exchange Commission (SEC) has insisted that the Annual General Meeting (AGM) of Oando Plc will remain suspended because of the conflicting judgment from the courts.
SEC stressed its insistence on the status quo in an update via a statement over the weekend stating that it sanctioned Oando following violation of several capital market regulations.
“The attention of the Securities and Exchange Commission (“The Commission”) has been drawn to publications in various media on the judgments against the Commission concerning its regulatory action on Oando Plc and several of its officers for severe breaches of capital market regulations, some of which are under criminal investigations. It is therefore important that the public is provided with the correct status of the subject matter.”
SEC recalled how it received a petition from a shareholder intimating the regulatory authorities of malfeasance and corporate governance infractions by the board of Oando, which necessitated its investigation.
“It may be recalled that in 2017, the Commission received petitions from two shareholders of Oando Plc alleging corporate governance lapses, mismanagement of the company etc.
The Commission conducted investigations into the activities of Oando Plc and observed certain infractions and violations of securities laws by some members of the Board of the company. To protect public interest and the integrity of the capital market, the Commission sanctioned the company and the affected directors via its letter dated May 31, 2019.”
The commission cited eight different suits challenging the decision to suspend the AGM of Oando Plc, with the courts churning out conflicting judgments
The regulatory body narrated, “One judgment of the Federal High Court, Lagos has held that the Federal High Court Nigeria lacks the jurisdiction to entertain the dispute as the jurisdiction lies with the Investments & Securities Tribunal.
“Three judgments of the Federal High Court, Abuja have held that the Federal High Court Nigeria lacks the jurisdiction to entertain the dispute as the jurisdiction lies with the Investments& Securities Tribunal.
“One judgment of the Federal Capital Territory, High Court Bwari Abuja has held that the Federal Capital Territory High Court Abuja has the jurisdiction to entertain the matter and granted the reliefs sought by the Applicants.
“One judgment of the Federal High Court, Kano has held that the Federal High Court Nigeria has the jurisdiction to entertain the dispute and granted the reliefs against the Commission.
SEC, however, advised all stakeholders to maintain status quo, which includes the suspension of the Annual General Meeting.
“In view of the conflicting judgments of the High Courts of coordinate jurisdiction, the Commission hereby advises the public that in line with the law and the pending appeals/applications for stay of the various judgments, parties and relevant stakeholders are enjoined to maintain status quo, which includes the suspension of the Annual General Meeting, pending the determination of the cases and the appeals,” it said.
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