Court Voids Sack Of Oando Directors By SEC

A federal high court in Kano has voided the sack of directors
and shareholders of Oando plc by the Securities and Exchange
Commission (SEC).

In 2019, SEC found the energy company guilty of “serious
infractions”, thereby barring Wale Tinubu, its chief executive
officer (CEO) and Mofe Boyo, deputy CEO, from the boards of public
companies for five years.

In addition, SEC instituted an interim management to appoint new
board of directors and a new management team for Oando.

SEC had also stopped the directors from holding Annual General
Meeting late last year before it finally fired them.

Aggrieved by the development, Yakubu M. Gumel, one of the
directors, instituted a suit against SEC challenging his
dismissal.

Delivering judgement on Wednesday, Lewis Allagoa, the presiding
judge, held that the commission acted arbitrarily in sacking the
directors.

The judge also granted all reliefs sought by the applicant,
including restraining SEC and its agents from “meddling into the
affairs and management of Oando plc.”

He, however, noted that SEC can intervene only in matters
involving capital markets, but it must comply with extant laws.

Dapo Ajagbe, counsel to the applicant, said the implication of
the judgement is that the interim management appointed by SEC is a
nullity and stands dissolved.

He then prayed to the court to award N500, 000 cost against the
defendant.

But, Abdullahi Ghazali, counsel to the commission, did not
concede to the request for cost.

The judge, however, awarded N250,000 in favour of the
applicant.

Allagoa also ordered that the matter should be resolved at the
investments and security tribunal.

A court had earlier ordered SEC to restrain its agents or anyone
acting on behalf of the commission from disturbing or meddling with
the affairs, management and activities of Oando.

A federal high court in Kano has voided the sack of directors
and shareholders of Oando plc by the Securities and Exchange
Commission (SEC).

In 2019, SEC found the energy company guilty of “serious
infractions”, thereby barring Wale Tinubu, its chief executive
officer (CEO) and Mofe Boyo, deputy CEO, from the boards of public
companies for five years.

In addition, SEC instituted an interim management to appoint new
board of directors and a new management team for Oando.

SEC had also stopped the directors from holding Annual General
Meeting late last year before it finally fired them.

Aggrieved by the development, Yakubu M. Gumel, one of the
directors, instituted a suit against SEC challenging his
dismissal.

Delivering judgement on Wednesday, Lewis Allagoa, the presiding
judge, held that the commission acted arbitrarily in sacking the
directors.

The judge also granted all reliefs sought by the applicant,
including restraining SEC and its agents from “meddling into the
affairs and management of Oando plc.”

He, however, noted that SEC can intervene only in matters
involving capital markets, but it must comply with extant laws.

Dapo Ajagbe, counsel to the applicant, said the implication of
the judgement is that the interim management appointed by SEC is a
nullity and stands dissolved.

He then prayed to the court to award N500, 000 cost against the
defendant.

But, Abdullahi Ghazali, counsel to the commission, did not
concede to the request for cost.

The judge, however, awarded N250,000 in favour of the
applicant.

Allagoa also ordered that the matter should be resolved at the
investments and security tribunal.

A court had earlier ordered SEC to restrain its agents or anyone
acting on behalf of the commission from disturbing or meddling with
the affairs, management and activities of Oando.