AGM cancellation not in the interest of shareholders, company – Oando replies SEC

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… as share price drops by 2.60%

Story by Kayode Tokede and Olabode Jegede

Oando Plc has said Securities & Exchange Commission (SEC) suspension of its 42nd Annual General Meeting of Tuesday was not in the interest of shareholders and the company.

The company in a statement said, “It is the Company’s position that the action taken by SEC in directing a cancellation of the AGM is not in the best interests of the company and its shareholders who have travelled at great expense, from far and wide, to attend the annual meeting of their Company.”

The SEC on Monday had suspended Oando’s AGM of Tuesday over the outcome of its forensic investigation that led to Mr. Adewale Tinubu, Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO), Mr. Omamofe Boyo  from being directors of public companies for a period of five years.

However, the company in a statement on The Nigerian Stock Exchange on Tuesday noted that “We have received notification from the Securities and Exchange Commission (SEC) by a letter dated today, Monday, June 10, 2019 at 12:42pm directing the suspension of the validly convened 42nd Annual General Meeting (AGM) of Oando Plc on the premise of 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 (“Ex-parte Order”).

“The Company disagrees with the SEC’s position that its directive to suspend the 42nd AGM accords with the Ex-parte Order. Oando PLC by notice to the public and its shareholders on May 10, 2019 validly convened its 42nd Annual General Meeting.

“The actions contained in the SEC’s letter to the Company dated Friday, May 31, 2019 was effectively put in abeyance by the Ex-parte Order of the Federal High Court, which was granted on Monday, June 3, 2019.

The company disclosed that it is expected to lose significant shareholder funds by the attendant cancellation of the AGM at such short notice.

“The Company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders. A new date for the AGM will be announced in due course.” The company statement added.

The management of SEC on Monday said, ”

Following SEC suspension of AGM, the company’s share price depreciated further by 2.60 per cent or N0.10 to N3.75 on Tuesday from N3.85 it opened for trading.

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