The Securities and Exchange Commission has urged shareholders of quoted companies to continue to uphold high ethical standards and promote new strategies to strengthen accountability among market participants in the Nigerian Capital Market.
The Director General of SEC, Mr. Lamido Yuguda said this during the 2022 edition of the Independent Shareholders Association of Nigeria Triennial Delegates Conference.
Yuguda stated that in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the Commission released a Code of Conduct for Members of Shareholders’ Associations to guide their conduct during general meetings of public companies and their relationship with public companies.
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According to him, this code is still in force, and is intended to ensure the highest standard of conduct among members and the companies with whom they interact with as shareholders.
He said, “The Code is designed to ensure that association members uphold high ethical standards and make positive contributions in ensuring that the affairs of public companies are run in an ethical and transparent manner in compliance with the Nigerian Code of Corporate Governance and the SEC Corporate Governance Guidelines.
“I urge you to continue to abide by this Code of Conduct for Members of Shareholders’ Associations by being disciplined and ensuring good governance.
“We therefore urge this association to continue to improve performance of the function of monitoring of companies to contribute to their growth by reviewing Audited Reports and Accounts prior to AGMs to raise germane observations on key areas.”
The SEC DG urged the shareholders to continue to promote their core activities which centers on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market.
He described the theme of the conference which focuses on reforming the judicial system in order to stabilize and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
“The judiciary has also been contributing to the development of the capital market through its role of adjudicating over matters involving stakeholders in the capital market.
“As the SEC continues its important regulatory work of protecting both
foreign and domestic investors who invest their funds in the Nigerian Capital Market, we will continue to partner with and engage the judiciary, and other relevant stakeholders,” he added.
Yuguda stated that in an increasingly competitive global environment for capital flows, foreign investors consider the strength and independence of a regulator in their investment decisions.
He stated that it is therefore a matter of urgent national priority to continue to send the right signals to the investing world that the Nigerian Capital Market is indeed soundly regulated by a strong and independent SEC, devoid of conflicting interference from any arm of Government.