Controversy has greeted the decision of the Security Exchange Commission to bar the Group Chief Executive Officer, Mr Wale Tinubu , from being a director of a public company for five years.
After over a year of forensic audit, SEC concluded the investigation of Oando Plc, leading to the sanctioning of Tinubu.
In a statement signed by its Head of Corporate Communications, Mrs Efe Ebola, SEC said it also barred Oando’s Deputy Group Chief Executive Officer (DGCEO) from being a director of a public company for five years.
The DGCEO is Mr Omamofe Boyo.
But while operators have okayed the SEC’s decision, the company’s management has kicked against it and threatened to go to court.
According to the operators, the 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.
The company made the decision known in a statement issued in Lagos by its Head of Corporate Communications, Mrs Alero Balogun.
Balogun said that the company would take all legal steps to protect its business and assets, while remaining committed to act in the interest of its shareholders.
“The company reserves the rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interest of all its shareholders,” she said.
The News Agency of Nigeria (NAN) reports that SEC on Friday barred Mr Wale Tinubu, the company’s Group Chief Executive Officer (GCEO), and Mr Omamofe Boyo, the Deputy Group Chief Executive Officer (DGCEO), from being directors of a public company for five years.
These were outcomes of the forensic audit of the company instituted by the commission in March 2018.
SEC noted that it appointed Deloite Nigeria to proceed with the forensic audit.
It said that the audit revealed infractions.
The commission in a statement also directed resignation of affected board members, and called on the company to convene an extra-ordinary general meeting on or before July 1, to appoint new directors.
Balogun, however, described as unsubstantiated, the commission’s call for resignation of affected board members of Oando Plc and convening of an extra-ordinary general meeting on or before July 1, 2019, to appoint new directors.
According to her, payment of monetary penalties by the company and affected individuals and directors, refund of improperly disbursed remuneration by the affected board members to the company were also unsubstantiated.
Balogun said that the company’s attention had been drawn to a statement issued by the commission on Friday, barring its GCEO and DGCEO from being directors of public companies for a period of five years.
She said that Oando was of the view that the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.
“The company has not been given the opportunity to see, review and respond to the forensic audit report and so is unable to ascertain what findings (if any) were made in relation to the alleged infractions, and defend itself accordingly before the SEC,” she said.
