Court voids SEC’s suspension of Oando management
A Federal High Court in Kano has held that the Securities and Exchange Commission (SEC) acted arbitrarily in suspending the management of Oando Plc.
It declared SEC’s appointment of an interim management null and void and awarded cost of N250,000 against the regulator in favour of the plaintiffs, Oando shareholders.
Justice A. Lewis Allagoa gave the ruling in a suit filed by Alhaji Yakubu Gumel and Alhaji Kabiru Tambari on behalf of the Sokoto Zone of Shareholders Association of Oando and Tunde Badmus for himself and the Pacesetters Shareholders Association of Oando.
SEC had filed a preliminary objection to the suit on the ground, among others, that the shareholders were challenging its regulatory powers over Oando.
But the judge observed that this was a wrong assumption because what the shareholders claimed was 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 shareholders’ prayers, including that SEC intervening in Oando PLC’s management without sharing the forensic audit report that led to the sanctions against the company and the concerned directors.
The Federal High Court in Abuja had last month ruled in favor of another Oando shareholder, Patrick Ajudua.
The court upheld Ajudua’s claim that SEC breached his rights as a shareholder and ordered Oando to hold its Annual General Meeting (AGM) within 90 days of the ruling.