Shareholders Berate SEC Over Hotel’s Board Dissolution

Some shareholders on the Nigerian Stock Exchange  (NSE) have berated the Securities and Exchange Commission  (SEC) on the dissolution of the board of Ikeja Hotels Plc.
The Tide source last Friday reported that the dissolution of the board by the apex capital market regulator was belated, saying that the step was long overdue.
Chairman, Nigeria Professional Shareholders Association, Mr Godwin Anono, said that the disolution of the board by SEC was late in coming, stressing that the infighting among the board members had been there for too long.
Anono said that the shareholders had expected SEC to dissolve the board a long time ago to safeguard shareholders’ interests.
He said that the decision was not too bad, but should have been done earlier before now.
Anono advised SEC to ensure that the interim management appointed for the company would not stay more than necessary.
He said that from experience, many interim boards instituted by regulators liked extending their stay to the detriment of the minority shareholders.
Anono also advised SEC to investigate the company’s board members and prosecute those found wanting on issues relating to fraud and abuse of corporate governance.
He said that lack of prosecution of erring listed companies made retail investors to shun the equities market.
According to him, market regulators should check  excesses of companies through prosecution to stop the corruption and instill confidence in the market.
A former Secretary, Independent Shareholders Association of Nigeria  (ISAN), Mr Bayo Adeleke, also said that SEC should have acted a long time ago.
Adeleke said that the infighting had been on in the last three to four years, adding that the commission should have wielded the big stick before now.
“What SEC has done is good, but the decision was late considering the number of years of the infighting,” he said.
Adeleke said that the interim management should be just an intervention to stabilise the company, but should not be a permanent arrangement.
He said that the interim management should be given a timeframe to complete its mandate, adding that the company should be handed over to shareholders on completion of its assignment.
ISAN National Coordinator Emeritus, Mr Sunny Nwosu,however, commended SEC for its intervention.
Nwosu said that SEC might have delayed to take actions  with strong reasons since many individuals had  intervened in the interest of the company.
“I think SEC was patient to see if they would settle their differences and should not to be accused of acting in haste’.
Nwosu said that the infighting had exposed the greed of some individuals, adding that companies should not only be majority shareholders, but for everyone.