Oando Crisis: Minority Shareholders Seek Presidency Intervention

Peeved by the actions of the Securities and Exchange Commission, SEC towards their company, shareholders of Oando Plc have called on the presidency to intervene towards saving the company from what they fear as a precipitous decline.

The shareholders reaction followed the cancellation of the Annual General Meeting, AGM of the company scheduled to have held on June 11.

The AGM was cancelled upon a court order obtained by a section of the shareholders with majority stake in the company.

But reacting at a press conference on Wednesday June 12, the minority shareholders fumed that the intervention of SEC was not to their benefit.

Hamza Ridhwan, Secretary General, Association for Investors Liberation, who spoke on behalf of 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.”

He observed that the share of the company had fallen from N4.20 on May 31 when SEC last intervened 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.”

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