Court adjourns Oando’s suit against SEC

Oando

A Federal High Court of Lagos under presiding Judge C M A Olatoregun has adjourned the case between Oando PLC’s CEO and the Securities and Exchange Commission (SEC).

In an email statement, Oando said:

“The Court directed that the Respondents’ Preliminary Objection and the substantive application for enforcement of fundamental Rights should be taken together at the next adjourned date. Consequently, the Court adjourned to 24th June, 2019. The Court ruled that all parties involved are to maintain the status quo pending the determination of the Motion”

The court had in its first hearing gave out an exparte order that:

  • An order of interim injunction restraining the Securities and Exchange Commission (SEC), its servants, agents, employees and / or privies from taking any step concerning and / or acting on the decisions contained in its letter of 31st May 2019 imposing a fine of N91,125,000 on Jubril Adewale Tinubu and barring both Jubril Adewale Tinubu and Omamofe Boyo from being Directors of public companies for a period of 5 years.
  • An order of interim injunction restraining Mutiu Olaniyi Adio Sunmonu from acting as the head of the Interim Management of Oando PLC.
  • An order staying and / or suspending the execution or the enforcement of the SEC’s decisions contained in its letter dated 31st May, 2019 imposing a fine of N91,125,000 on Jubril Adewale Tinubu and barring both Jubril Adewale Tinubu and Omamofe Boyo from being Directors of public companies for a period of 5 years.
  • An order restraining the SEC, its servants and its agents from directing, requesting any Agency of the Government from acting upon the SECs decisions contained in its letter dated 31st May, 2019.

Last  week, the SEC canceled the planned annual general meeting of the company pending the determination of the lawsuit filed by Oando Plc.

The SEC had ordered for the sack of Oando’s board after the Commission said the impropriety it dug at Oando plc ranges “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, amongst others.”

The SEC ordered that:

  1. Resignation of the affected Board members of Oando Plc,
  2. The convening of an Extra-Ordinary General Meeting on or before July 1, 2019, to appoint new directors,
  3. Payment of monetary penalties by the company and affected individuals and directors,
  4. Refund of improperly disbursed remuneration by the affected Board members to the company,
  5. Bar of the Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive Officer (DGCEO) of Oando Plc from being directors of public companies for a period of five (5) years.

The SEC said it will also e referring the matter to the appropriate authorities for ” possible criminality to the appropriate criminal prosecuting authorities. In addition, other aspects of the findings would be referred to the Nigerian Stock Exchange (NSE), Federal Inland Revenue Service (FIRS), and the Corporate Affairs Commission (CAC).”