Cancelled AGM: Minority shareholders of Oando fault SEC’s action

The minority shareholders of Oando Plc have faulted the decision of the Securities and Exchange Commission (SEC) to cancel the earlier scheduled Annual General Meeting (AGM) of the company.

While briefing journalists on Wednesday June 12, the minority shareholders of Oando Plc led by Hamza Ridhwan, Secretary General, Association for Investors Liberation, said the actions of SEC were not in their interest.

The recent suspension of Oando’s AGM is the second time in 3 years that SEC has tried to suspend an Oando AGM, the minority shareholders recalled.

SEC had on Monday June 10 suspended the 42nd AGM of Oando Plc (a company listed on the Nigerian and Johannesburg Stock Exchanges).

The AGM would have held last Tuesday June 11 at the Zinnia Hall, Eko Hotels and Suites, Victoria Island Lagos.

SEC in a statement said the decision was in adherence to the Ex-parte Order of the Federal High Court, Ikoyi Lagos in SUIT NO: FHC/L/CS/910/19 in Mr. Jubril Adewale Tinubu & Anor V Securities & Exchange Commission & Anor.

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Oando Plc had in a statement at Nigerian Stock Exchange (NSE) dated June 11 and signed by Ayotola Jagun, Company Secretary, disagreed with Securities and Exchange Commission on its decision to cancel the AGM, adding that it had by a notice to the public and its shareholders on May 10, 2019 validly convened its 42nd Annual General Meeting.

The minority shareholders said: “We the minority shareholders of Oando Plc categorically state our utmost displeasure and disappointment at the SEC current management of the investigation into Oando Plc. The actions over the last 2 years and specifically the last 10 days have shown that our voices as minority shareholders are not being listed to”.

“We fully support the regulator and applaud the Government for institutions such as SEC as we know the imperative role they play in regulating and protecting the capital market. However, in the case of Oando, we are not convinced that SEC has acted in our best interest or protected our investments.

“We call on the Government and Presidency to intervene as it is not acceptable for SEC to attempt to take down a company the size of Oando that adds so much value to the Nigerian economy, which is an employer of labour and attracts significant Foreign Direct Investment (FDI) into the country,” the minority shareholders stated.

They challenged the SEC to tell the minority shareholders how the last-minute suspension of the AGM is in their best interest. They noted that since SEC’s press release on May 31, “there has been erosion in the value of our shares from N4.20 on May 31 to N3.75 on June 11”.

“We condemn in absolute terms, the way and manner chosen by SEC in announcing the cancelation on the eve of the event, despite having ample time to do same. We have shareholders who have come in from all over the country and it is disappointing and disheartening to think that the SEC did not think it worthy to consider us, the esteemed shareholders when determining when to notify the general public on the suspension of the AGM. Why was it done at such short notice?” the minority shareholders queried.

“SEC is a regulator that is here to protect the market and in particular we the minority shareholders. They have a duty to care for us first. Their actions in the Oando case has neither protected us nor shown a duty of care. From the six-month suspension in the trading of Oando shares to a 2-year investigation into the company, all have eroded value of our investments,” the minority shareholders further said.

According to Oando in a statement released on the Nigerian Stock Exchange (NSE), the actions contained in the SEC’s letter to the Company dated Friday, May 31, 2019 “were effectively put in abeyance by the Ex-parte Order of the Federal High Court, which was granted on Monday, June 3, 2019.”

The Company also said it stood to lose significant shareholder funds by the attendant cancellation of the AGM at such short notice, adding that it reserved its 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.