Court grants Tinubu, Moyo injunction against SEC orders

A Federal High Court in Lagos has granted the Group Chief Executive Officer and the Deputy of Oando PLC, Mr Adewale Tinubu and Mr Omamofe Moyo an injunction against the rulings of the Securities and Exchange Commission on the outcome of the forensic audit carried out into the affairs of the company.

In a suit file no: FHC/L/CS/910/19, Adewale Tinubu and Omamofe Moyo had prayed the court to order an interim injunction against Security Exchange Commission from taking any decision contained in its letter of 31st May, 2019 imposing a fine on Tinubu and barring both Tinubu and Moyo from being director of public companies for a period of five years.

The Court presided by C.M.A Olatoregun, has therefore granted the request, thus ordering that the parties are to maintain status quo ante pending the determination of the motion on notice, thereby adjourning the case to 14th June 2019.

SEC on Sunday had announced that it had set up an interim management team to oversee the affairs of Oando Plc, following the release on Friday, May 31, 2019, where the commission informed the public of the constitution of an interim management team headed by Mr Mutiu Olaniyi Sunmonu, to oversee the affairs of Oando Plc, and conduct an Extraordinary General Meeting on or before July 1, 2019, to appoint new directors to the board of the company, who would subsequently select a management team for Oando Plc.

“The commission wishes to reiterate its commitment to maintaining the integrity of the market.”

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SEC had on Friday announced the conclusion of the investigation of Oando and ordered the Group Chief Executive Officer of the company, Mr Wale Tinubu, and other affected board members to resign.

The apex capital market regulator also said it barred Tinubu and the Deputy Group Chief Executive Officer of the company, Mr Omamofe Boyo, from being directors of public companies for a period of five years.

It also directed the convening of an extraordinary general meeting on or before July 1, 2019, to appoint new directors.

The commission said findings from the report revealed serious infractions such as false disclosures, market abuses, misstatements in financial statements, internal control failures, and corporate governance lapses, “stemming from poor board oversight, irregular approval of directors’ remuneration, unjustified disbursements to directors and management of the company, related party transactions not conducted at arm’s length, among others.”

Oando, however, said the “alleged infractions and penalties are unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.”