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Court voids sack of Oando directors by SEC

Court voids sack of Oando directors by SEC
March 24
19:40 2021

A federal high court in Kano has voided the sack of directors and shareholders of Oando plc by the Securities and Exchange Commission (SEC).

In 2019, SEC found the energy company guilty of “serious infractions”, thereby barring Wale Tinubu, its chief executive officer (CEO) and Mofe Boyo, deputy CEO, from the boards of public companies for five years.

In addition, SEC instituted an interim management to appoint new board of directors and a new management team for Oando.

SEC had also stopped the directors from holding Annual General Meeting late last year before it finally fired them.

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Aggrieved by the development, Yakubu M. Gumel, one of the directors, instituted a suit against SEC challenging his dismissal.

Delivering judgement on Wednesday, Lewis Allagoa, the presiding judge, held that the commission acted arbitrarily in sacking the directors.

The judge also granted all reliefs sought by the applicant, including restraining SEC and its agents from “meddling into the affairs and management of Oando plc.”

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He, however, noted that SEC can intervene only in matters involving capital markets, but it must comply with extant laws.

Dapo Ajagbe, counsel to the applicant, said the implication of the judgement is that the interim management appointed by SEC is a nullity and stands dissolved.

He then prayed to the court to award N500, 000 cost against the defendant.

But, Abdullahi Ghazali, counsel to the commission, did not concede to the request for cost.

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The judge, however, awarded N250,000 in favour of the applicant.

Allagoa also ordered that the matter should be resolved at the investments and security tribunal.

A court had earlier ordered SEC to restrain its agents or anyone acting on behalf of the commission from disturbing or meddling with the affairs, management and activities of Oando.

 

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