Operators on the nation’s bourse on Friday said that suspension
of two directors of Oando Plc from public companies for five years
would bring sanity to the capital market.
They spoke with the News Agency of Nigeria (NAN) in Lagos in
reaction to the outcome of the Securities and Exchange Commission
(SEC) forensic audit of Oando Plc.
NAN reports that SEC on Friday barred Wale Tinubu, the company’s
Group Chief Executive Officer, and Omamofe Boyo, the Deputy Group
Chief Executive Officer, from being directors of a public company
for five years.
The commission conveyed the decision in a statement signed by
Efe Ebelo, its Head of Corporate Communications,
NAN reports that SEC in March 2018 announced the commencement of
audit of Oando Plc’s account.
It said it had appointed Deloite Nigeria to proceed with the
forensic audit.
The commission in the statement also directed resignation of the
affected board members, and called on the company to convene an
extra-ordinary general meeting on or before July 1, to appoint new
directors.
Commenting on the development, Ambrose Omordion, the Chief
Operating Officer, InvestData Ltd., said that the suspension would
send a signal to other managing directors and executives in the
market.
Mr Omordion said that the outcome of the forensic audit showed
that SEC could bite and not only bark.
He said that the investing public had been calling for change in
the company’s management for a long time.
According to Mr Omordion, there will be santiy in the company
when the new management takes over in July.
“Other companies and their directors will sit up, seeing how
Oando management and its directors ended up.
“SEC decision will further boost corporate governance and
transparency in qouted companies and increase investors’
confidence,” Mr Omordion told NAN.
Shehu Mikail, National President, Constance Shareholders
Association of Nigeria, also expressed satisfaction at the
commission’s decision.
Mr Mikali said that the ban would instill transparency and
corporate governance in the nation’s capital market.
The shareholder activist said that the outcome showed that
nobody was above the law in the market.
He said that some companies had collapsed due to lack of
transparency and corporate governance.
(NAN)