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Brokers Fault Retention of Manu, Ikazoboh in NSE Council

By on April 15, 2011

The Associationof  Stockbroking Houses of Nigeria (ASHON)  has petitioned the  Securities and Exchange Commission (SEC),  faulting the  decision to allow the Interim President of the Nigerian Stock Exchange (NSE),   Mallam  Ballama Manu and Interim Administrator of  the NSE,  Mr. Emmanuel Ikazoboh ,   to remain on the Council of the Exchange.

The interim management of the NSE took over the running of the NSE last August following the intervention of the SEC. The interim management was  mandated, among others to appoint a new Chief Executive Officer for the Exchange.

Although a new CEO has assumed office since April 4, 2011, SEC explained  recently that   a lot more work needed to be done to put the Exchange on a sound footing and  directed  the Council to  admit some professionals, as public interest members, to strengthen the Council and support the new management team.

“All the SEC-nominated members, including Messrs Manu and  Ikazoboh, shall be on the Council pending the election of a new council and are charged with working with existing Council members,” SEC had said.

However, ASHON, which is the umbrella body for managing directors of stockbroking firms, in a letter dated April 13, 2011  said the Commission was breaching stockbrokers’ right as shareholders/members of the exchange with that directive.

“Our position is that the Interim Administration has ended with the new CEO. The attempt to perpetuate the continued stay of the Interim Administrator as deputy of the NSE President  is not only illegal, but high handed.

“On November 23, 2010 stockbrokers after an election, nominated seven of its members to represent it on Council in accordance with their rules, only three of these members were co-opted purportedly because of subsisting court cases. We view the attempt to appoint majority of the members of this council as a way to exercise proprietarial rights which SEC does not have,” they declared.

According to the brokers, for a new SEC that is preaching corporate governance, they do not see how the appointment of members to the NSE promotes good governance, if the NSE Council lacks independence.

Responding to the development, SEC’s Head of Media, Mr. Lanre  Oloyi  told THISDAY Thursday night that  the directive that  Manu and Ikazoboh  should remain on the Council is an interim arrangement.

“As the Commission said  early this month, Manu and Ikazoboh shall be on the Council pending the election of a new council and are charged with working with existing Council members to achieve the following:   restructuring the Exchange to ensure good corporate governance practices;  concluding the ongoing initiatives/plans regarding the trading platform and other infrastructure of the Exchange aimed at making it a world class Exchange;   guiding the new Management team over the next few months to settle; and   preparing the Exchange for its demutualisation including the restructuring of the legal framework,” Oloyi said.

Source : Thisday