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Court stops hearing on code of corporate governance

By on May 19, 2015

The Financial Reporting Council of Nigeria has cancelled the public hearing on the draft National Code of Corporate Governance scheduled to hold on Tuesday (today).

The Chairman, FRC, Hajia Maryam Ibrahim, said this at a press briefing in Lagos on Monday, adding that the council received a court injunction stopping it from holding the public hearing.

Following the development, she said that the FRC would not go ahead with the event although an arrangement had already been made for the public hearing.

Ibrahim wondered why some interested parties could obtain a court injunction to stop the public hearing when they still had the opportunity of commenting on the draft.

She said, “We are now at the exposure draft stage. But it began when the Minister of Trade and Investment constituted a steering committee which followed due process in carrying out its activities. The process has been on for about two years. We have about 23 regulatory agencies involved and each one of them was supposed to take the code to their organisations.

“We also have the big four accounting firms. Apart from the steering committee, there is also the technical committee. The code would not become law at the end of the public hearing but would have to be sent back to the board for approval. So it is a long process.”

The FRC board chairman, who noted the institute had followed due process in putting together the National Code of Corporate Governance, said the code could not have become operational immediately after the public hearing.

Ibrahim, however, restated the FRC’s commitment and determination to ensuring that the country had a national code of corporate governance.

According to her, the institute’s efforts are in line with global best practices and that some countries on the continent such as Mauritius already have a national code of corporate governance.

On media reports claiming that there were divisions in the FRC’s board over the document, she said, “When the board members saw some of the publications, they were surprised. There is no problem at all among the board members.

“ I think what happened was that there were some arrears that needed to be paid to some categories of staff but you know this is a young board and eventually they were paid. Some members of staff also needed to be promoted but it has to follow due process.”

She also debunked the allegation of financial impropriety levelled against the FRC management, arguing that the board members had seen all the council’s bank documents and did not discover any missing funds.

The Executive Secretary, FRC, Mr. Jim Obazee, had on April 22 said the agency had completed work on the National Code of Corporate Governance.

He said the Federal Government had on January 17, 2013 constituted a steering committee on the NCCG, chaired by Mr. Victor Odiase, to develop the code.

Odiase, who was also at the briefing, said the draft NCCG had been given to stakeholders to view and send their comments within 30 days.