FHC Kano Rules for Oando Shareholders, Says SEC Overreached its Regulatory Powers


Thursday, March 25, 2021 / 08:15 AM / by News / Header Image Credit: Lawcare Nigeria

Proshare Nigeria Pvt. Ltd.

Oando shareholders in the persons of Alhaji Yakubu Gumel; Alhaji Kabiru Tambari, suing for himself and on behalf of the Sokoto Zone Shareholders Association; Tunde Badmus, suing for himself and for the benefits of Pacesetters Shareholders Association, bagged yet another win at the Federal High Court (FHC) Kano, in a suit filed against the Securities and Exchange Commission (SEC) for overreaching its powers. Justice A. Lewis Allagoa presiding over the ruling dismissed the regulators preliminary objection and granted all the reliefs sought by the Oando Shareholders. 


The FHC Kano dismissed SEC's objection on the basis that the shareholders' claims fall under their rights as shareholders according to the Companies and Allied Matters Act (CAMA) and is therefore not a capital markets issue, hence it is completely under the jurisdiction of the FHC under Section 251 of the constitution. The Court further held that SEC was wrong in assuming that the Shareholders were challenging SEC's regulatory powers over Oando, whereas what the shareholders claimed is that SEC exceeded its regulatory powers thereby making all their actions to date illegal and an infringement of their rights. 


The Court further granted all the prayers sought by the Oando shareholders, specifically that SEC intervening in Oando PLC's management without sharing the forensic audit report that led to the sanctions against the company and concerned Directors was the regulator acting beyond the scope of its powers. Also, that SEC acted arbitrarily in suspending the management of Oando and therefore declared the appointment of the interim management null and void; the Court, therefore, awarded a N250,000 cost against SEC in favor of the Oando shareholders.


Exactly a month ago, the High Court Abuja, ruled in favor of another Oando shareholder, Patrick Ajudua, who filed a suit against the commission for breach of his rights as a shareholder. The court ruled in his favor ordering Oando to hold its Annual General Meeting (AGM) within 90 days of the ruling.


The plethora of court cases against the SEC has been necessitated by the frustrations of shareholders. Specifically, minority shareholders who have seen the regulator at loggerheads with Oando for nearly 4 years. Their concern is that despite the woes on them, the regulator continues in a battle that seems to have no end in sight but is destroying value every day. Shareholders have over the last 4 years, called for the SEC and Oando to reach an amicable agreement or resolution so the company's management can focus on running the business, but these calls have fallen on deaf ears. By taking matters into their own hands the shareholders have finally decided they will fight for their rights and each win is evidence that this is an action that should have taken years ago. 


At the FHC in Kano the displeased shareholders called the ruling a big win. Alhaji Tambari Kabiru, one of the applicants, an Oando shareholder since 1991 explained why he decided to sue the apex regulator. He said "I was not happy with the current state of my investment, so I had to do something about it. I invested my money heavily with the hopes of capital appreciation and this has not been the case. This SEC and Oando case is affecting the valuation of our investment; it gets worse each year. For over two years now, we have been totally in the dark about our investment in Oando. Year on year, our investment has depreciated. We are tired! We have reached out to the SEC and appealed a resolution, but they haven't listened to us, that's why we took the matter to court."


Speaking on the Court ruling, Alhaji Tambari said; "This is a great win for we the shareholders. We have endured too much pain these past four years. To worsen it, we had no oversight of what was going on in the company. We can't continue like this, especially in these trying times when every penny counts. I thank the Government for giving us confidence in the justice system. We, the common man, have nowhere to go but the court, and they have ruled in our favor which means no one can escape justice. I thank the management of Oando for persevering this long and also the employees at Oando for standing by the company even in these trying times. I hope that this ruling SEC can allow us to hold our AGM and SEC will leave the company's management to run the business.'


The sentiment of neglect by the SEC is the same across board as another applicant representing Pacesetters shareholder association, Mr. Tunde Badmus explained his reason for suing the regulator. He said "The good of the company has to be for the good of all stakeholders. We have absolute faith in Oando, its Board and management, hence our resolve to stand by the company. As stakeholders, though minority shareholders, we still value our investment and the path being taken by the company. We are confident that the board and management will not launder or plunge the company into deliberate difficulty. When the regulators wanted to impose new management on the company, we frowned at it and thankfully that didn't happen. They should stick to their regulatory role and not try to become operators of the company by imposing management of their choice on us. We have reached out to the regulator both the old and new management to no avail, hence we had to head for litigation."


The SEC's non-responsive attitude towards the plight of shareholders of the company has been met with criticism. With the economic recession taking its toll on people, including shareholders and the investing community, there's a need for the regulators to protect the capital market and its investors. As explained by the shareholders, Nigeria needs foreign direct investments now more than ever; the investing community is watching and will be discouraged by regulatory actions like these, making the operating environment appear hostile and unfavorable. 

Proshare Nigeria Pvt. Ltd.

Related Reports

  1. Memo to The Market: The Oando Corporate Journey - At The Regulators Gate - Dec 10, 2017
  2. Download Full (PDF) Report - Memo to The Market: The Oando Corporate Journey - At The Regulators Gate - Dec 10, 2017
  3. Download (PDF) Report - SEC Technical Committee on Oando Plc 2017 -Dec 04, 2017
  4. Review of the SEC Technical Committee Recommendations, Opinion and Final Report

Proshare Nigeria Pvt. Ltd. 

Related News on Oando

  1. OANDO Plc Responds to Abuja Court Ruling
  2. OANDO and SEC Legal Battle Continues as OANDO Appeals Court Ruling
  3. OANDO Share Price up 10% off Positive Court Ruling as SEC Reacts to the Court Judgement
  4. Engr Ajudua Secures Judgement as Court Stops SEC from Infringing on OANDO Shareholders Rights
  5. Oando Foundation Commemorates 10 Years of Bridging the Gap in Basic Education
  6. Oando Foundation Initiates Project to Promote Environmental Education and Responsibility
  7. OANDO Notifies of Delay in the Publication of its Q3 2020 Financials
  8. Oando's Nigeria at 60 Digital Platform Showcases Indigenous Talent and Instils National Pride
  9. Oando Joins Business Leaders to Pledge Support For Multilateralism as The United Nations Turns 75
  10. Oando Hosts Webinar on Revolution Based Change to Achieve Inclusive Growth
  11. OANDO Announces Delay in Filing Audited 2019 and Q1 2020 Unaudited Financial Statements
  12. Oando and IoD Host Webinar on Leadership Strategies for Navigating the Impact of COVID-19
  13. Oando, Aiteo, Seplat and Others Collaborate To Fight COVID-19
  14. Oando Becomes First Oil and Gas Company in Nigeria to be ISO 27001 Certified
  15. Oando Plc Announces the Successful Signing of Two Gas Supply Agreements with NLNG
  16. International Volunteer Day - Oando Foundation Refurbishes Early Childcare Classes
  17. Oando PLC Announces YTD September 2019 Results, Posts N13.1bn Profit-After-Tax
  18. OANDO Declares N13.06bn PAT in Q3 2019 Results (SP:N3.40k)
  19. NSE Reclassifies Oando Plc As Low Priced Stock
  20. NNPC, NAOC and OANDO JV Makes Gas and Condensates Discovery
  21. Oando Reaffirms Commitment to Support the Development of Sao Tome and Principe
  22. OANDO, MORISON And 82 Others Record Drop In Share Price In Ten Years
  23. Oando Plc Appoints Dr Alex Irune As An Executive Director; Mobolaji Osunsanya Resigns
  24. OANDO Declares N7.17bn PAT in Q2 2019 Results,(SP:N3.95k)
  25. Federal High Court Adjourns SEC Vs Oando Case to July 22
  26. Deloitte Issues Press Statement on OANDO Forensic Audit
  27. Oando PLC Responds to SEC's Statement Regarding Fair Hearing in the Investigation of the Company
  28. Two Weeks After: OANDO Shares Dropped By -7.14%, -22% YTD
  29. FHC Lagos Adjourns Hearing Between Oando Plc's GCE and Deputy GCE and SEC
  30. Oando PLC's Official Response To SEC's Suspension Of Its 42nd AGM
  31. SEC Suspends OANDO's Prior Approved AGM Scheduled To hold on June 11, 2019
  32. Oando Update: SEC Aligns Principle Of Fair Hearing With Cooperation During Investigations
  33. One Week After: OANDO Shares Dropped By -4.76% WoW, -20% YTD
  34. Chief Sena Anthony and Mr. Oghogho Akpata Resign From OANDO's Board Effective June 3rd, 2019
  35. Oando Share Price Drops 20% Off The Back Of SEC Investor Protection Moves
  36. OANDO Declares N4.63bn PAT in Q1'19 Results (SP:N4.85k)SEC Appoints Interim Management Team For Oando Plc Headed By Mr. Mutiu Olaniyi Adio Sunmonu
  37. Post-Forensic Exchanges: The SEC Letter to Oando Plc and The Oando Rebuttal
  38. Oando Challenges SEC's Ruling On The Outcome Of The Forensic Audit Into Oando PLC
  39. SEC Announces Far Reaching Decisions On The Investigation Of Oando Plc
  40. Oando Optimises Value From Midstream Business
  41. OANDO Declares N4.63bn PAT in Q1'19 Results (SP:N4.85k)
  42. Oando PLC Announces Divestment of its Residual 25% Interest in Axxela Limited
  43. Oando's Plan to Deleverage and Remain Profitable
  44. Oando Plc Announces FYE 2018 Results, Posts N28.8 Billion Profit-After-Tax
  45. OANDO Declares N28.79bn PAT in 2018 Audited Results (SP:N5.65k)
  46. Oando PLC Announces YTD September 2017 Results; Gives Operational Highlights
  47. Oando Plc state Positions on the Securities and Exchange Commission Alleged Findings
  48. Oando Secures Court Injunction, restraining SEC, NSE
  49. Oando Shares Now Available for Trading, No Price Movement During Technical Suspension
  50. JSE Follows NSE, Suspends Trading in the Shares of Oando Plc
  51. Oando Gives Holding Response on SEC's Directive to NSE to Suspend Trading of Its Shares
  52. Oando PLC's Official Statement on the SEC's Directive to The NSE to Suspend Trading of Its Shares
  53. NSE, SEC Confirm Decision To Suspend Trading On The Shares of Oando Plc
  54. Trading on the Shares of Oando Plc Suspended; Reasons Unknown
  55. Oando Gas & Power Rebrands as Axxela
  56. House of Reps gives SEC Two weeks to submit Report on Oando PLC
  57. Oando Plc. - AGM Resolution
  58. Oando Plc holds 40th AGM, engages Shareholders on the Progress of its Restructuring Plan
  59. Oando Plc's 40th AGM To Hold As Planned Following SEC Confirmation
  60. Oando Plc to Hold 40th AGM on Sept 11, 2017
  61. Oando Plc Issues an Update on Claims of a SEC Investigation
  62. OANDO Declares N4.56bn Profit in Q2 2017 Results,(SP:N7.80k)
  63. Oando Issues Press Release over SEC Investigation
  64. Corporate Earnings for the Week Ending 140717 – UCAP declares N1.99 billion Profit in Q2'17 Results
  65. SEC Investigating Oando Plc
  66. OANDO Plc Announces Closed Period
  67. Oando Provides Clarifications on its Refinery Ambitions
  68. OANDO Declares N1.71bn Profit in Q1 2017 Results,(SP:N5.80k)
  69. OANDO Plc Announces Closed Period
  70. Oando Plc to Hold 2016 AGM on Tuesday 2nd August
  71. Oando Plc Key Highlights on Q4 15 and Q1 16
  72. OANDO Concludes Recapitalization Partial Divestment of Equity Stake in Its Downstream Operations
  73. Material Uncertainty May Cast Doubt on Oando's Ability to Continue as a Going Concern - Ernst & Young
  74. OANDO Releases Q4 15 and Q1 16 Results Declares N4.10bn PAT in Q1 SP N6.50k
  75. Oando Plc Secures 5 Year N94.6 Billion Medium Term Facility with 10 Nigerian Banks
  76. Oando explains what Deregulation of Petrol Price means for its Downstream Operations
  77. Why Oando Plc's 2015 Audited Statements will be released on May 31, 2016
  78. OANDO to acquire OER Minority Shares for a Consideration of US 1.20 per share in Cash
  79. The Corporate Governance Rating System - Proshare
  80. ETI, Oando Plc under Fire over Ownership, Governance



Proshare Nigeria Pvt. Ltd. 

Related News on SEC Laws and Corporate Governance

  1. The-Market-Memorandum-Fundamental-Considerations-for-Capital-Market-Reforms-in-Nigeria/2910
  2. Corporate Governance and Directors' Remuneration
  3. SEC Proposes New Rules & Amendments to Rules on Book Building, Corporate Governance
  4. Good Corporate Governance is Good Business
  5. SEC, Udo Udoma And Corporate Governance: The Fact Files
  6. Enabling Law - Investment and Securities Act (ISA) 2007
  7. SEC Nigeria's Executed Rules and Regulations as at June 2017
  8. SEC Nigeria's Consolidated Rules and Regulations as at 2013
  9. Code of Corporate Governance for Public Companies_4 April 2011

Proshare Nigeria Pvt. Ltd. 

Related News on Oando from Other Sources

  1. N236bn Liability: Oando Shareholders Protest in Ibadan - Independent
  2. Intel's Volpi Steps Up Battle Against Wale Tinubu over Control of Oando - ThisDay
  3. Suspension of OANDO PLC - SEC
  4. Oando Shareholders Set To Sack Wale Tinubu, Board - Independent
  5. Notice to the General Public on Oando Plc - SEC
  6. So what's happening at Oando (2)? - Business Day
  7. So what's happening at Oando (1)? - Business Day
  8. The inside story: Why SEC ordered a Forensic audit of Oando Plc - Business Day

Proshare Nigeria Pvt. Ltd.
Related News