Following the Nigerian Stock Exchange (NSE) suspension of its shares, Resort Saving & Loans Plc has appointed Barr Joseph Chukwuocha as Chairman of Directors and a Managing Director for the mortgage institution.
Last week, the Exchange announced placing full suspension of trading as directed by the Securities and Exchange Commission (SEC).
The new chairman is replacing Chief Babatunde Adefarati. The company also appointed Mr Ola Oyinloye as the Managing Director.
Chief Adefarati resigned from the board amidst scuffle for the chairmanship of the company.
“Resort Saving & Loans Plc wishes to notify its shareholders and other stakeholders that at the meeting of its Board of Directors held on December 14, 2016 , Mr Joseph Chukwuocha, a non-exectuve director was elected Chairman of the Board of Directors following the resignation of the erstwhile Chairman, Chief Francis Babatunde Adefarati.
“Mr Michael Olaonipekun Oyinloye was appointed the new managing Director of the Bank. He was until his appointment Executive Director, Operations following his appointment to the Board of Directors on March 4, 2016 and approval by the Central Bank of Nigeria on August 24, 2016,” the company’s secretary, LPC Solicitors stated in a circular to NSE.
Chukwuocha has been a director of Resort Savings & Loans since 2012. The company secretary to the company, LPC Solicitors, has been mandated to notify all regulatory authorities of the decisions of the board.
Directors of the company stated that they expected the new chairman to bring his wealth of experience as a successful businessman to reposition the mortgage bank in its ongoing restructuring exercise.
The NSE had placed full suspension on the shares of Resort Savings as capital market regulators launched investigation into allegations of corporate governance abuses against the management and directors of the mortgage banker.
A circular issued by the NSE had indicated that the Commission had directed that a full suspension be placed on Resort Savings, implying that there will be no trading on the shares of the company.
“In compliance with the provisions of Section 35 of the Investments and Securities Act, 2007 and in order to give effect to the above directive, the Exchange will suspend full trading in the securities with effect from Tuesday 06 December 2016. The suspension will remain in force until further directives from the SEC,” the circular indicated.
Resort Savings has wriggled under losses over the years. Loss after tax rose from N1.57 billion in 2013 to N2.99 billion in 2014. Also, the Consumer Protection Council (CPC) recently stated that it has started investigations into alleged diversion of mortgage funds and other sundry fraud allegations against Resort Savings & Loans Plc.
Nigerian NewsDirect yet to confirm if the suspension has been left by SEC.