SEC Dissolves Ikeja Hotels Board

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The Securities and Exchange Commission (SEC) has dissolved the Board of Ikeja Hotels Plc, following an unending and unresolved internal crisis involving some majority shareholders of the company.

The Commission in a statement said this proactive measure has become necessary in order not to allow the warring parties take certain actions that would give them an advantage over one another.

The Securities and Exchange Commission said,” “Having 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 and Mr. Abatcha Bulama, FCA as Interim Chairman”.

According to the statement the interim Board among others is mandated to oversee the conduct of a forensic investigation into the affairs of the company. “It is the Commission’s expectation that the shareholders and key Management staff of the company will work with the new team to ensure that the fortunes of the company are restored in the shortest possible time” It stressed.

The apex capital market regulator emphasized that its proactive action is aimed at forestalling chaos in the organization.

It added that 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.

The Commission explained 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.

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