Justice Mohammed Aikwa of the Federal High Court, Lagos yesterday struck out a suit filed by Oando Plc seeking to restrain the Securities and Exchange Commission (SEC) from conducting a forensic audit on the affairs of the company, and imposing a technical suspension on the company’s shares. The judge also adivised Oando to take its case to the Investment and Securities Tribunal (IST), as the laws setting up the tribunal exclude any other body from hearing a dispute between a company and a capital market operator.
“I hold that the subject matter of this issue falls within the exclusive jurisdiction of the Investment and Securities Tribunal and not this court.
Prior to this..
The Nigerian Stock Exchange (NSE) had last month placed the shares of Oando Plc on technical suspension following a request from the SEC, pending its conclusion of a forensic audit into the affairs of the company. Preliminary investigations by the regulator, showed the company had breached sections of the Investment and Securities Act (ISA) and the SEC Code of Corporate Governance. Oando however kicked against the audit, calling it ill timed and injurious to its operations.
The audit stems from a petition sent by two aggrieved shareholders Gabriel Volpi and Dahiru Managal alleging mismanagement of the firm and denying them adequate representation on the board. Oando’s management has however denied the allegations. The House of Representatives has also waded into the matter asking other aggrieves shareholders to submit petitions.
The Investment and Securites Tribunal
The Investment and Securites Tribunal was established by virtue of section 224 of the Investment and Securities Act 1999, which was replaced with Section 274 the Investment and Securities Act 2007. The tribunal is responsible for the resolution of civil disputes within the capital market including those involving the Securites and Exchange Commission (SEC).
