By Amaka Ifeakandu
Securities and Exchange Commission (SEC) has urged shareholders associations not to allow themselves used as manipulative tools by quoted companies.
Director General of the commission, Arunma Oteh, gave this advice in Lagos at joint workshop organised by Independent Shareholders Association of Nigeria (ISAN) and PR Plus.
Oteh, who was represented by Mr Suleiman Alhassan, said that sometimes some shareholders associations give the impression of collusion with the boards of some public companies, adding that observation at some annual general meetings indicated that organisations are commended even when their performance are poor.
She said that the role of shareholders was to ensure the effectiveness of internal control systems of companies in which they invested in.
Urging them not to allow themselves to be manipulated by companies, she said there was need for them to comply with the provisions of the code of conduct for shareholders association issued by the Commission.
Speaking further, she said for us to succeed in ensuring effective corporate governance in public companies, the regulators and shareholders have to work together to ensure that the right people are on the board of company. She said that both the regulators and investors are expected to make sure that the companies are doing their job effectively, evaluating the outcome of the processes and structure they put in place and proper scrutinisation of individuals before they are put in higher positions that would have impact on shareholders benefits.
Describing shareholders associations as the watch dogs on the excesses of the executives of the companies, she said that they are whistle blowers in ensuring that managers of companies work in accordance with good corporate governance.
She said that the theme of the workshop “AGM as a Platform for Value Optimization” came at the right time, adding that the effective governance of all public companies and the involvement of shareholders associations who are the key player are necessary.
