….SEC dissolves Ikeja Hotels Plc Board
By Chinenye Anuforo and Chinwendu Obienyi
After several hours of negative performance the Nigerian Stock Exchange (NSE) All-Share Index (ASI), yesterday ended in green, rising by 0.19 per cent to close at 26,166.80.
The total market value remained at N9.04 trillion mark with Zenith Bank Plc, being the major volume driver of the day with a total volume of shares sold at Thursday’s trading at N255.64 million for about N2.5 billion in 5,106 deals.
Meanwhile the Securities and Exchange Commission (SEC) has announced the dissolution of the board of Ikeja Hotels Plc due to unresolved internal crisis involving some majority shareholders of the company.
The Commission said this proactive measure has become necessary in order not to allow the warring parties take certain actions that would give them an advantage over one another.
According to the SEC, to forestall chaos in the organisation, the Commission and other distinguished personalities, had previously held various meetings with the existing Board towards resolving the crises but the company continues to be plagued by unhealthy Corporate Governance practices. “In disregard of the Code of Corporate Governance for public companies, adding that as a public company, it was paramount that the activities of the company are conducted within the confines of existing corporate governance regulations in the Nigerian capital market ensure the protection of minority shareholders and other investors”.
“Having failed to resolve its lingering crisis, the Commission in exercise of the powers conferred on it by the Investment and Securities Act, 2007 to protect investors and the integrity of the securities market, hereby approves the appointment of an interim Board for the company with Chief Anthony Idigbe, SAN as interim Chairman” the statement said.
The interim Board among others is mandated to oversee the conduct of a forensic investigation into the affairs of the company.