SEC Orders Resignation Of Oando Board, Bars Wale Tinubu
The Securities and Exchange Commission (SEC), has given a directive for the resignation of the affected board members of an energy company, Oando Plc, and also barred the Group Chief Executive Officer of the company, Wale Tinubu, and his deputy, from being directors of the companies for five years.
This is after the capital market regulator concluded investigation into the activities of the company, regarding alleged infractions and other market violations.
Following the receipt of two petitions by the Commission in 2017, investigations were conducted into the activities of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).
Certain infractions of Securities and other relevant laws were observed. The Commission further engaged Deloitte & Touche to conduct a Forensic Audit of the activities of Oando Plc.
The general public is hereby notified of the conclusion of the investigations of Oando Plc. The findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arms length, amongst others.
SEC also ordered payment of monetary penalties by the company to affected individuals and directors, and refund of improperly disbursed remuneration by the affected Board members to the company.
The Commission is confident that with the implementation of the above directives and introduction of some remedial measures, such unwholesome practices by public companies would be significantly reduced.
Therefore, in line with the Federal Governments resolve to build strong institutions, Boards of public companies are enjoined to properly perform their fiduciary duties as required under extant securities laws the statement added.
In addition, the commission also directed the convening of an extraordinary general meeting on or before July 1, 2019, to appoint new directors.
The regulator said all issues with possible criminality to be referred to the appropriate criminal prosecuting authorities.