By Niyi Jacobs
A struggle for ownership and control is brewing at the board of Nigeria’s premier Over-the-Counter (OTC) Exchange, NASD Plc, sending worrying signals to investors and stakeholders. The Securities and Exchange Commission (SEC) is urged to intervene to prevent a verbal war at the upcoming 11th Annual General Meeting (AGM) on September 24, 2024.
The controversy surrounds the re-election of three directors, including Mrs. Kenechi Ezezikah, Mrs. Olayimikah Bollo, and Mr. Ishmael Ebhodaghe, who retire by rotation. VFD Group Plc, a major institutional investor, has objected to their re-election, citing concerns over the financial performance of NASD and the need for a strategic refresh.
NASD’s management has defended the re-election clause, stating it is consistent with the company’s Memorandum and Article of Association.
However, VFD Group Plc argues that some directors with recent appointment dates should not be presented for re-election when there are directors who have been serving for long.
The disagreement has raised concerns about the shareholding structure of NASD and the need for SEC to review the policy of shareholding in securities exchanges. The unfolding drama has also highlighted the need for a strategic refresh and upscaling of NASD’s visibility to deliver value to stakeholders.
In a broader perspective, the issue has sparked a debate about the importance of experience and youth in corporate governance. While youthful drive is essential, experienced professionals with robust industry knowledge should not be discarded. The SEC is urged to initiate fresh conversations to address concentrated risk in the securities market and protect investors’ interests
