BY KENNETH EZE
After years of legal tussle, Oando Plc has entered into a settlement with the Securities and Exchange Commission in the overriding interest of the shareholders of the company and the capital market.
The SEC disclosed this in a circular posted on its website during the week.
Recall that the commission in 2019 said it found Oando guilty of serious infractions, for which the regulator barred Wale Tinubu, the company’s Chief Executive Officer and Mofe Boyo, its deputy CEO, from the boards of public companies for five years.
The SEC also instituted an interim management, with a mandate to appoint new board of directors and management team for Oando.
The circular revealed that the company had reached a settlement with the commission without accepting or denying liability on immediate withdrawal of all legal actions filed by it and all affected directors.
The circular stated that the agreement included payment of a monetary sum, and an undertaking by the company to implement corporate governance improvements.
It stated, “Part of the terms required the submission by the company of quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
“Pursuant to the powers conferred on the Commission by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the commission on July 15, entered into a settlement with Oando Plc (the company).
“The commission in its letter to the company dated May 31, 2019, gave certain directives and imposed sanctions on the company, following investigations conducted pursuant to two petitions filed with the commission in 2017.
“The company and some of its affected directors had challenged the said directives in a series of suits commenced at the Federal High Court’”
In the circular, SEC explained that Oando approached the commission for a settlement of the matter, and both parties had agreed to settle in consideration of the impact that a further prolonged period of litigation would have on the company’s shareholders and the value of their investments.
The commission also reiterated its commitment to ensuring the fairness, transparency and integrity of the capital market, while upholding its mandate to protect investors.
