Oando gets on with energy business following SEC settlement
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Oando Plc, Nigeria’s integrated energy company, is getting on with its core business of playing in the Nigerian and African energy space and delivering to its shareholders today following the settlement of a two year dispute with the Securities and Exchange Commission (SEC).
The SEC, the capital market regulatory body, has entered into a settlement with Oando Plc of all matters subject of litigation and other issues flowing therefrom.
Oando Plc, in a disclosure filed to the Nigerian Exchange Group revealed that the settlement agreement is in the overriding interest of the shareholders of the company and the capital market after years of a legal tussle between both parties.
“Both parties believe that a settlement is the most appropriate course of action and one that is in the best interest of the Company, its employees, shareholders as well as the capital market. Specifically, the settlement reached by the parties seeks to prevent further market disruption and harm to Oando Plc shareholders. As a result, Oando’s directors and management team can now fully focus on business operations whilst continuing to ensure that it is in compliance with all governing statutes. In the immediate, the Company will be convening its 42nd Annual General Meeting (AGM) to give its shareholders the opportunity to exercise their rights to receive information as well as vote on company affairs,” the circular stated.
SEC, in a circular on its website, disclosed that it reached a settlement with the company on the immediate withdrawal of all legal actions filed by it and all affected directors and also stated that the agreement includes the payment of all monetary penalties stipulated in the letter by the commission since 2019 as well as an undertaken by Oando to implement corporate governance improvements.
“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).
“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.
“The commission in its letter to the company dated May 31, 2019, gave certain directives and imposed sanctions on the company, following investigations conducted pursuant to two petitions filed with the commission in 2017. The company and some of its affected directors had challenged the said directives in a series of suits commenced at the Federal High Court,” SEC said.
Oando further stated that ”the reached agreement was an extraordinary time in the life of the Company and a defining moment in its relationship with the regulator. The Company recognizes and respects the authority of the Commission and will continue to comply with the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, while always acting in the best interest of all its stakeholders.”