Unic Press UK: A Federal High Court sitting in Lagos has restrained the Securities & Exchange Commission (SEC) of Nigeria from imposing sanctions against Oando [a company listed on the Nigerian and Johannesburg Stock Exchanges] and the company’s directors.
In a press statement Monday, Oando company secretary Ayotola Jagun said that the presiding Judge C. M. A. Olatoregun granted an injunction restraining the SEC, its servants, agents, employees and or privies from imposing a suspension on and sanctions against Oando PLC and its directors, until the Motion on Notice before the court is determined.
In its statement last Friday, relating to a concluded investigation of Oando PLC, the Securities & Exchange Commission (SEC) said that the result of a “forensic audit” of the activities of the company by Deloitte & Touche shows that Oando had committed “serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, among others.”
Oando is challenging the Securities and Exchange Commission ruling on the findings of the Forensic Audit. In its initial statement issued on May 31, Oando said:
“Oando is of the view that these alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the Company. The Company reserves its rights to take all legal steps to protect its business and assets whilst remaining committed to act in the best interests of all its shareholders.”