SEC Assures Investors Of Resolving Disputes In Timely Manner
The Securities and Exchange Commission, SEC, has assured investors of its readiness to ensure that disputes arising from capital market activities are resolved amicably and in a timely manner.
The Acting Director General of the Commission, Mary Uduk gave this assurance at the maiden edition of Issuers & Investors Alternative Dispute Resolution Initiative (IIADRI) held in Lagos.
She said: “Disputes arise in everyday life. As such, the capital market has also witnessed its share of disputes over the years. The Commission is committed to ensuring that disputes are resolved amicably and in a timely manner.”
Uduk, who was represented at the occasion by Mrs. Olubukanla Rufai, a director at the Commission said: “Presently, the complaint management framework, issued by SEC spells out the procedures for resolution of disputes in the Nigerian capital market. It encourages the first line resolution of disputes between investors, capital market operators and public companies before escalation to relevant authorities. Securities and Exchange Commission SEC
“Without investors, there can be no capital formation. Investors are thus, the life wire of any capital market and as such, must be protected. The Commission takes investor protection seriously, as it is one of its core mandates.
‘Today’s Issuers’ and Investors’ Clinic seeks to spell out the roles of stakeholders at Annual General Meetings, AGMs and I would be speaking on, Enhancing Shareholders’ Value through Stronger and Coordinated Shareholder Associations: Why and How?” She noted that shareholders’ Associations were borne out of the need to promote good governance of public companies, influence corporate and government policies that seek to encourage investment, advance the interest of shareholders, especially the minority shareholders, and optimize shareholders’ value.
“According to the Nigerian Code of Corporate Governance 2018 issued by the Financial Reporting Council of Nigeria, FRCN, the Board of Companies are to ensure that dealings of companies with shareholders’ associations are always transparent and in the best interest of the company.
Specifically, Principle 23 of the Code states that, “equitable treatment of shareholders and the protection of their statutory and general rights, particularly the interest of minority shareholders, promote good governance”.
Uduk enumerated that the FRCN code recommends equitable treatment of and fairness to all shareholders, as well as adequate protection of minority shareholders from abusive actions by controlling shareholders. Speaking, the guest speaker at the occasion, Ms. Daisy Ekineh, who is also a former Commissioner and Acting Director General, SEC said: “Shareholder associations as currently exist are neither effective nor respected and therefore, not taken seriously by stakeholders including public companies.
They are perceived as often seeking pecuniary benefits from companies as against ensuring good governance.
The associations are also perceived as disruptive rather than disciplined at AGMs. Besides, there are too many shareholders associations, making it difficult for regulators and others to effectively engage with them.”
