A group of minority shareholders in the Tourist Company of Nigeria, owner of the Federal Palace Hotel, has urged the Securities and Exchange Commission to step in over what it called a prolonged management crisis at the company.
The call was made during a protest at the SEC headquarters in Abuja, led by Dr Olatunde Okelana, Chairman of the Zonal Shareholders Mobilisation Committee, the group said in a statement on Thursday.
Addressing the protesters, Okelana said the demonstration was aimed at drawing the regulator’s attention to the difficulties minority shareholders of TCN have faced over the years.
“Although the SEC has taken steps within its statutory powers as the supervisory authority of the capital market, it has unfortunately failed to enforce its own pronouncements on this matter,” he said.
“The minority shareholders have faced challenges for quite some time. The SEC has done what it could within the law, but unfortunately, it has been reluctant to enforce its decisions. We think there is an external influence preventing the SEC from enforcing its rules,” Okelana added.
He added that the company’s affairs were being handled without regard for the interests of minority shareholders. “Minority shareholders no longer have a say in how the company is run,” he said.
Okelana also pointed out that TCN did not hold its Annual General Meeting last year, leading to the non-payment of dividends and worsening frustration among minority shareholders.
“That is why we are here, so the management of the SEC can listen to us. Minority shareholders are tired of the inaction. If the SEC fails to intervene, shareholders will continue to suffer, be denied dividends, excluded from decision-making, and see their funds eroded,” he said.
He urged the Federal Government to promptly direct the SEC to take decisive action to safeguard the interests of minority shareholders.
On the next steps, Okelana said the group intends to engage members of the Senate Committee on Capital Market, which exercises oversight of the SEC.
“We want the interim board nominated for the company to be allowed to run its affairs so that these issues can be addressed,” he added.
