Oando Secures Fresh Court Order To Review SEC Sanction

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Updated July 8, 2019

Oando Shares Move Up On Stock Exchange

 

The Federal High Court in Lagos has granted Oando Plc permission to file a motion for a judicial review of the Securities and Exchange Commission’s decision imposing a fine of N89,675,000 on it.

Justice Ayokunle Faji also granted leave to the company to apply for an order of certiorari for the quashing of SEC’s directive to Oando to convene an extraordinary general meeting on or before July 1 to appoint new directors and articulate remedial measures for the alleged corporate governance lapses.

Justice Faji further granted leave to Oando Plc to apply for an order of certiorari for the quashing of a press release by SEC on June 1 appointing an interim management team to be headed by Mr. Mutiu Sunmonu (the third respondent) to oversee Oando’s affairs.

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The leave granted by the court also permits Oando Plc to apply for “an order of prohibition and/or an injunction restraining and preventing the first and second respondents or their agents from enforcing the decision contained in the letter dated 31 May 2019”.

SEC’s Acting Director General, Mary Uduk and SEC itself are the first and second respondent in the suit.

Justice Faji directed Oando to ensure service of the order and the application for judicial review, on the respondents, within 48hours.

The commission had on May 31 announced the conclusion of an investigation of Oando and ordered its Group Chief Executive Officer Mr. Wale Tinubu, his deputy Mr. Omamofe Boyo other affected board members to resign.

It barred Tinubu and Boyo from being directors of public companies for a period of five years.

SEC subsequently set up an interim management team headed by Sunmonu to oversee Oando’s affairs and to conduct an Extraordinary General Meeting on or before July 1.

In an ex-parte application filed through their counsel Olasupo Shasore (SAN), Tinubu and Ojo prayed for an order of certiorari to quash SEC’s purported imposition of N91,125,000 fine on Tinubu. The application was granted.

Oando, also through Shasore, filed the latest application seeking for judicial review of the SEC decisions against it with a view to quashing them, which Justice Faji granted.

He adjourned until July 22 for further hearing.