By Margaret Nongo-Okojokwu
The Federal High Court in Lagos has restrained the Securities and Exchange Commission from giving effect to its decision contained in a May 31, 2019 letter in respect of Oando Plc. SEC in the said decision, had imposed a fine N91, 125,000 on Oando’s Group Chief Executive Officer, Adewale Tinubu.
It also barred Tinubu and his deputy, Mr Omamofe Boyo, from being directors of public companies for five years.
SEC directed that an Extra-Ordinary General Meeting of Oando be convened on or before July 1, 2019, to appoint new directors.
The commission said it took the decision to address “identified violations” in Oando Plc, following an investigation.
But in a ruling on Monday by Justice Mojisola Olatoregun, the Federal High Court barred SEC from giving effect to the decision pending the determination of a suit filed by Tinubu and Boyo.
Justice Olatoregun ordered the parties to maintain status quo. A copy of the order was obtained by Majorwaves Energy Report in Lagos.
The judge made the interim order following an ex parte application taken before her and argued by Mr Tayo Oyetibo (SAN), accompanied by Mr Yele Delano (SAN) and Motunrayo Akinyemi.
She ordered that the interim order along with the motion on notice filed by Tinubu and Boyo should be served on SEC and Mr Mutiu Sunmonu, who was joined as second respondent in the ex parte application.
She adjourned till June 14, 2019 for further proceedings. In the ex parte application, Tinubu and Boyo had urged the court to “stop SEC and its servants or agents from directing, requesting any agency of government to act upon its decision contained in its letter of 31st May 2019”.
They also prayed the court to stop Sunmonu “from acting as the head of interim management of Oando Plc pending the hearing and determination of the applicants’ motion for interlocutory injunction.”
In a statement on Friday (31st May 2019) by its Head of Public Relations, Mrs Efe Ebelo, SEC said, “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 arm’s length, amongst others”.
Consequently, the Securities and Exchange Commission had barred the Group Chief Executive Officer of Oando Plc, Wale Tinubu, and his deputy, Omamofe Boyo, from holding Director Positions of public companies for a minimum five year period.
The Nigerian capital market regulator also directed other members of the Board of the company to resign their positions forthwith.
