Oando PLC is pleased to announce that it has resolved a four-year-long dispute with the Securities and Exchange Commission (SEC) on all matters subject to litigation and related issues. Both parties believe that the settlement is the best course of action, one that is best for the company, its employees, shareholders, and the capital market.
The parties’ agreement aims to prevent further market disruption and harm to Oando PLC shareholders. It is a win for the capital market, particularly for the shareholders who have been badly affected, given recent challenges in the country such as an unprecedented pandemic, volatility in oil prices, which is a mainstay of the nation’s economy; an increase in the unemployment rate, inflation, poverty, insecurity, and a drop in the country’s ranking on the ease of doing business index.
According to the SEC, the company reached an agreement with the Commission on Thursday, July 15, 2021, without accepting or denying liability. The settlement includes the immediate withdrawal of all legal actions filed by the company and all affected directors; payment of a monetary sum, an undertaking by the company to implement corporate governance improvements, and the submission of quarterly reports on the company’s compliance with the terms of the Settlement Agreement, the Investments and Securities Act of 2007, the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
The settlement will finally allow Oando’s management team to focus on its business operations, create value for its shareholders, and, in the short term, let the company convene its 42nd Annual General Meeting (AGM) to allow its shareholders to exercise their rights to receive information and vote on company affairs.
Engr. Patrick Ajudua, an Oando shareholder, stated, “It is a great delight that SEC and Oando have reached an amicable settlement following their long-running dispute. It’s a victory for all lovers of peace in the capital market and for all Oando shareholders who have been disproportionately affected by the prolonged dispute. I hope and pray that lessons have been learned and that efforts are being made to assist the management team to return to business and recover from the lengthy dispute to deliver value to us. We thank the regulator for towing the part of a peaceful resolution. I want to commend Oando’s Board and Management for their resilience and patience all through the period of dispute.”
This has been an extraordinary period in the company’s history and a watershed moment in its relationship with the regulator. Oando PLC recognises and respects the Commission’s authority and will continue to comply with the Investments and Securities Act of 2007 while always acting in the best interests of all of its stakeholders.
This is the first time in Nigerian corporate history that the SEC and an organisation have reached an agreement in the interest of the capital market, which bodes well for the business environment, the capital market, and the investing community.
