Oando’s AGM cancelled amid boardroom tussle

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Oando’s AGM cancelled amid boardroom tussle

Published Date: 2019-06-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Oando’s AGM cancelled amid boardroom tussle

The Nigerian oil group says the SEC's actions are not in the best interests of the company or its shareholders.

Nigeria's Securities and Exchange Commission (SEC) suspended Oanda's annual general meeting yesterday in a growing boardroom tussle at the Nigerian oil producer. That's after the regulator wrapped up an investigation into the company and barred CEO Wale Tinubu and deputy CEO Omamofe Boyo from being directors of public companies for five years.

According to The Africa Report, the SEC investigated Oanda after receiving two petitions in 2017. Its probe included a forensic audit of the company and the investigation has now been handed over to the country's Economic & Financial Crimes Commission. The audit, by Deloitte & Touche, revealed serious infraction such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, the SEC said. Oando said the allegations were unsubstantiated and invalid.

An interim management team was appointed to oversee the company's affairs and conduct an extraordinary general meeting by 1 July to appoint a new board of directors. The Africa Report said one of the petitions to the SEC was filed by Italian-Nigerian businessman Gabriele Volpi, who has been fighting Tinubu in the courts over a $680 million debt.

The suspension of the AGM came despite the Federal High Court of Lagos granting Tinubu and Boyo an interim injunction restraining the SEC from installing interim management at the company. The SEC said suspending the AGM would allow all parties involved to maintain the status quo.

Oanda's shares are listed on the Nigerian and Johannesburg markets, but rarely trade on the JSE. They fell 44% in light trade on 3 June after the actions of the SEC on 31 May. Two non-executive directors also resigned from the board of directors on 3 June.

Its shares didn't trade in Johannesburg yesterday, closing unchanged at 15c.





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