Finance

Oando settles legal tussle with SEC

Oando resolves shareholder dispute, releases 2019 financials

The Securities and Exchange Commission agreed to a settlement with Oando Plc of a dispute on corporate governance since 2019.

According to a statement from the regulator on Monday, Oando settled with the SEC without accepting or denying liability on the petitions against it.

The SEC had on May 31, 2019 sanctioned Oando and barred two of its directors, Adewale Tinubu and Omamofe Boyo, from serving on the company’s board for five years after an investigation, which the firm challenged in court.

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The statement said they agreed on terms including “the immediate withdrawal of all legal actions filed by the company and all affected directors; payment of a monetary sum; and an undertaking by the company to implement corporate governance improvements”.

Also in the terms of settlement was the requirement of quarterly reports by Oando in compliance with 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 SEC said, “Pursuant to the powers conferred on the SEC by the Investments and Securities Act 2007, and the Rules and Regulations made pursuant thereto, the commission on Thursday, July 15, 2021, entered into a settlement with Oando Plc.

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 “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.”

“However, the company subsequently approached the commission for a settlement, and both parties have now agreed to settle considering the impact that further prolonged litigation would have on the company’s shareholders and the value of their investments.

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“Also, remedial measures are to be put in place by the company in enhancing its corporate governance practices and strengthening its internal control environment.

Punch

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