The Securities and Exchange Commission (SEC) may have lost the authority to carry out the planned imposition of N89.7 million fine on Oando Plc. The commission had announced in a letter released on May 31, 2019 that it would fine the company. However, the Federal High Court sitting in Lagos has granted leave to the oil and gas company to file a motion for a judicial review of the decision.
Justice Ayokunle Faji of the Federal High Court had granted leave for an order of certiorari for the purpose of quashing the decision of the capital market regulator.
Nairametrics understands that Mary Uduk, SEC’s Acting Director-General, SEC and Oando’s interim head, Mutiu Sumonu, were the first to third respondents.
Other orders: The court also granted an order of certiorari for the quashing of SEC’s directive, that mandated Oando to convene an Extraordinary General Meeting (EGM) on or before July 1, to appoint new directors and articulate remedial measures for the alleged corporate governance lapses.
More so, the Justice granted an order of certiorari for the quashing of a press release by SEC on June 1, appointing an interim management team to be headed by Sunmonu to oversee Oando’s affairs.
Prior to this, SEC had on May 31, 2019, announced the conclusion of an investigation of Oando Plc and ordered its Group Chief Executive Officer, Wale Tinubu, his deputy Omamofe Boyo, amongst other affected board members, to resign.
Consequently, SEC barred Tinubu and Boyo from being directors of quoted companies for a period of five years.
But in an ex-parte application filed through their counsel, Olasupo Shasore (SAN), Tinubu and Boyo prayed for an order of certiorari to quash SEC’s purported imposition of a fine on Tinubu.
Oando, also through Shasore, filed an application seeking for judicial review of the SEC decisions against it with a view to quashing them. This was granted by Justice Faji.
The Genesis: Oando Plc and SEC have been at loggerheads since the regulatory body released the results of its investigation into the activities of the management of the company. SEC accused the management of market abuses and false disclosures, demanding the resignation of Tinubu, the Chairman of the Board, and other executives and directors of the company.