19th July, 2021
By Chinyere Joel-Nwokeoma
Oando Plc has entered into a settlement with the Securities and Exchange Commission (SEC) in the overriding interest of the shareholders of the company and the capital market after years of legal tussle.
This was contained in a circular posted on SEC’s website on Monday.
Earlier in 2019, the commission had found Oando guilty of serious infractions, thereby barring Wale Tinubu, the company’s CEO and Mofe Boyo, its deputy CEO, from the boards of public companies for five years.
SEC also instituted interim management to appoint a new board of directors and management team for Oando.
The circular said the company had reached a settlement with the commission on the immediate withdrawal of all legal actions filed by it and all affected directors.
It said the agreement included payment of all monetary penalties stipulated in the commission’s letter of May 31, 2019; and an undertaking by the company to implement corporate governance improvements.
“Part of the terms required the submission by the company of quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
“Pursuant to the powers conferred on the Commission by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the commission on July 15, entered into a settlement with Oando Plc (the company).
“In its letter to the company dated May 31, 2019, the commission gave certain directives and imposed sanctions on the company, following investigations conducted pursuant to two petitions filed with the commission in 2017.
“Oando and some of its affected directors had challenged the said directives in a series of suits commenced at the Federal High Court,” it said.
Meanwhile, the circular added that Oando approached the commission for a settlement of the matter, and both parties had agreed to settle in consideration of the impact that a further prolonged period of litigation would have on the company’s shareholders and the value of their investments.
The commission also reiterated its commitment to ensuring the fairness, transparency and integrity of the capital market, while upholding its mandate to protect investors.