How to protect shareholders’ investments, by Osunkeye
SHAREHOLDERS’ groups have been urged to engage in active dialogue with the Financial Reporting Council of Nigeria and other regulatory bodies in various policies to ensure safety of their investments.
According to the Chairman of Lafarge Africa Plc, Chief Olusegun Osunkeye, for Nigerians to optimize the value of their investments, there was need for the regulatory authorities to initiate policies that will not be inimical to the growth of their investments.
Osunkeye, who spoke at the seminar organized by Independent Shareholders Association of Nigeria (ISAN) in collaboration with PR Consulting, in Lagos, at the weekend, submitted that shareholders will reap value for their investment through active engagements and participation in policy formulation by listed companies and market regulators.
He noted that if some of the regulations made by the regulators are strictly enforced, “some businesses may have to fold up or sell their assets to pay the hefty penalties”, citing an instance of the guidelines/regulation issued by Financial Reporting Council of Nigeria as published in the official gazette No. 90 vol.101 issued on October 6, 2014.
He pointed out that some rules and regulations such as the one governing transactions with related parties or interested parties as issued by the Nigerian Stock Exchange and approved by Securities and Exchange Commission, which states that an interested person such as core investors shall abstain from voting on resolutions approving the transaction brought before the general meeting for shareholders approval could give rise to unintended consequences.
He stated that shareholders’ associations could ameliorate the seeming lack of voting power, adding that “they have to prepare, know their subject on the issues they care about and engage in dialogue and management of companies.”
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.