SEC dissolves Ikeja Hotels’ board over lingering crisis

SEC dissolves Ikeja Hotels’ board over lingering crisis

SEC dissolves Ikeja Hotels’ board over lingering crisis

The Nigerian capital market apex regulator, the Securities and Exchange Commission, has dissolved the Board of Directors of Ikeja Hotels Plc due to unresolved internal crisis involving some majority shareholders of the company.

The move, the commission said, became necessary in order not to allow the warring parties take certain actions that would give them an advantage over one another.

SEC, in a report on Thursday, said it hoped to forestall chaos in the organisation, stressing that the commission and other distinguished personalities, had previously held various meetings with the existing board towards resolving the crises but the company continued to be plagued with unhealthy corporate governance practices in disregard to the Code of Corporate Governance for public companies.

As a public company, the regulator said it was paramount that the activities of the company were conducted within the confines of existing corporate governance regulations in the Nigerian capital market, to 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,” SEC stated.

The interim board among others is mandated to oversee the conduct of a forensic investigation into the affairs of the company, according to SEC.

“It is the commission’s expectation that the shareholders and key management staff of the company will work with the new team to ensure that the fortunes of the company are restored in the shortest possible time,” it stressed.

Source:© Copyright Punch Online