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.
SEC said in a statement yesterday that this â€œproactive measure has become necessary in order not to allow the warring parties take certain actions that would give them an advantage over one another.â€
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 with unhealthy corporate governance practices in disregard with the Code of Corporate Governance for public companies.
SEC added that as a public company, it is paramount that the activities of the company are conducted within the confines of existing corporate governance regulations in the Nigerian capital market, to ensure the protection of minority shareholders and other investors.
â€œHaving 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 Chairmanâ€ SEC said.
Meanwhile, the stock market recorded gains for the fifth consecutive trading session as investors continued to take position in large cap stocks on the exchange. Consequently, the Nigerian Stock Exchange All-Share Index (NSE ASI) closed 0.20 per cent higher to settle at 26,166.80, reducing the year-to-date decline to 2.6 per cent. Also, the market capitalisation added N18 billion to close at N9.Investors gained N18.0bn as market capitalization rose to N9.0 5 trillion. The positive close was majorly driven by gains in Nigerian Breweries Plc, Zenith Bank and International Breweries Plc.
A total of 26 stocks advanced while 15 declined. International Breweries Plc led the price gainers with 9.3 per cent trailed by Fidson Healthcare with 9.1 per cent, while NAHCO appreciated by 4.8 per cent.
Conversely, Stanbic IBTC Bank Plc led the price losers with 9.6 per cent, while Unity Bank Plc shed 7.4 per cent. AXA Mansard Insurance Plc went down by 4.5 per cent.
â€œConsidering the positive momentum witnessed since the start of the week, we expect the market to close the week positive; however, we do not rule out the possibility of some â€œend of the weekâ€ profit-taking by investors in the trading session ahead,â€ analysts at Afrinvest (W.A) said.