Operators in the capital market and shareholders have called on Securities and Exchange Commission, SEC, and Nigerian Stock Exchange, NSE, to place the shares of Oando Plc on technical suspension to protect minority shareholders of the company, which share price has fallen by over 20 per cent in the past two trading days.
They also stated that the court injunction obtained by Oando could lead to long legal battle, which could further affect the company’s shares price on the NSE, if it was not placed on suspension.
The operators also called on the Federal Government to urgently intervene in the conflict between the SEC and Oando Plc.
Meanwhile, the SEC executives, at press time, were still holding meeting regarding the court order obtained by Oando.
Spokesperson for SEC, Mrs Efe Ebelo, said : “SEC is still holding a meeting. I can’t speak now.”
National Chairman, New Dimension Shareholders Association of Nigeria, Mr Patrick Ajudua, who spoke the minds of its members in a chat with Vanguard, said: “The SEC findings on Oando speak volume. As shareholders of the company, we are more interested in protection of minority shareholders, their investments and protection of capital market.
‘’The consequences of this far-reaching recommendation from the regulator has tremendous effect on the share price of the company, both local and international, market integrity, rule of law and expected returns on investment.
‘’For purposes of fair hearing, we expect the company to come out with its position on the matter as this will allow the shareholders to take a position with respect to the issue at hand.
‘But going by the findings of the investigator, the board and management of the company have much clarification to make, the role played by the external auditor, the audit committee, the external board evaluators and even the regulators, who have unfettered access to the account of the company, who gave approval to the account as presented, should also be indicted.
‘’I believe that SEC, as currently constituted, has no power to take such a far-reaching decision without the consent of a board. The regulator has been operating without a board for more than four years and as such, is like a car without a pilot, a human being with body without the head. Even the USA SEC has not operated without a board since 1939.”
Reacting as well to the outcome of a forensic audit on Oando released by SEC on May 31, as well as a court injunction restraining SEC from sacking Oando’s Group Chief Executive Officer, Mr Adewale Tinubu, and his deputy, capital market operators applauded the courage of SEC’s acting Director-General, Ms Mary Uduk, in releasing the outcome of the forensic audit.
