Oando: Federal High Court restrains SEC from removing Tinubu, Boyo

The Federal High Court sitting in Lagos has restrained the Securities and Exchange Commission (SEC) from removing Wale Tinubu and Omamofe Boyo as Group Chief Executive Officer (GCEO) and Deputy Group Chief Executive Officer (DGCEO) of Oando Plc respectively.

The Justice Mojisola Olatoregun court granted an interim injunction following an application by the embattled GCEO and DGCEO. The duo had applied for enforcement of their fundamental rights.

The court also restrained SEC, its servants or agents from taking any step concerning the commission’s letter dated May 31, 2019 in which it barred Tinubu and Boyo from being directors of a public company for five years.

The Securities and Exchange Commission (SEC) on Sunday night informed the public of the constitution of an Interim Management Team to be headed by Mutiu Olaniyi Adio Sunmonu.

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SEC said the interim management is to oversee the affairs of Oando Plc, and conduct an Extra Ordinary General Meeting on or before July 1, 2019.

Also, the Interim management, according to SEC is to appoint new Directors to the Board of the Company, who would subsequently select a Management Team for Oando Plc. The Commission however reiterated its commitment to maintaining the integrity of the capital market.

Oando got an Order Of Interim Injunction restraining the 1st Respondent (SEC), its servants, agents employees and/ or privies from taking any step concerning and or acting on its decision contained in its letter of 31st May 2019 imposing a fine of N91,125,00 on the 1st Applicant and barring the 1st and 2nd Applicants from being directors of the public companies for a period of 5 years pending the hearing and determination of the Applicants’ Motion for Interlocutory Injunction.

Also, the court granted Oando interim injunction restraining the 2nd Respondent (Mutiu Olaniyi Adio Sunmonu) from acting as the head of the interim management of Oando Plc pending the hearing and determination of the Applicants’ Motion for Interlocutory Injunction.

Also, granted was an order staying and or suspending the execution or the enforcement of the 1st Respondent’s decision contained in its letter of 31st May 2019 imposing a fine of N91, 125.000 on the 1st Applicant and barring the Applicants from being directors of public companies for a period of 5 years pending the hearing and determination of the Applicants’ Motion for Interlocutory Injunction.

The Federal High Court also granted an order of interim injunction restraining the 1st Respondent, its servants and its agents from directing, requesting any agency of government to act upon its decision contained in its letter of 31st May 2019 pending the hearing and determination of the Applicants’ Motion on Notice.

Stock investors at the Nigerian Bourse on Monday priced-in possible risk to the company’s future.  The share price of Oando Plc was down 9.52 percent in early trading on the Nigerian Stock Exchange (NSE) after the Securities and Exchange Commission (SEC) unveiled its findings from an investigative report on the company.

The stock, which opened at N4.20 on Monday, lost 40 kobo to N3.80 at the close of trading by 2:30pm Nigerian time, bringing the company’s share value to its lowest level since November 30, 2016.

IHEANYI NWACHUKWU