By Peter Egwuatu

Shareholders, under the aegis of Proactive Shareholders Association of Nigeria, PROSAN have berated the manner in which the Corporate Affairs Commission, CAC grants approvals to companies to host Annual General Meetings, AGMs without due process. They further urged the regulatory bodies in the country to collaborate with one another for virile and sensitive capital market issues in order for the country to get global attractions.

The shareholder group in a letter sent to the Registrar General of CAC and obtained by Vanguard expressed their displeasure over the manner in which the commission granted approval to Internationa Energy Insurance Plc without following due process.

In the letter signed by the National Coordinator, and General Secretary of PROSAN, Mr. Oderinde Taiwo and Mrs . Oluyemisi Fawunmi , it sated , I hereby write on behalf of the above named associations and the entire minority shareholders of International Energy Insurance Plc for your insensitivity and for putting our investment at risk by granting approval to one of the shareholders of the company by name Pearlchris Properties Limited t hold Extra- ordinary General Meeting, EGM last month at Le Meridian Hotel, Uyo, Akwa Ibom State.”

Prosan warned the CAC not to allow such unnecessary approval to person other than the company to host AGM. “We do not want you to repeat this type of mistake whenever any other shareholder (s) of any quoted company approach you in the nearest future for the same purpose” it added.

The shareholders cautioned CAC on the need to get in touch with the direct regulatory body overseeing such a company. “For example, CBN regulates banks and Securities and Exchange Commission, SEC regulates quoted companies. So, for approvals of AGMs to companies being regulated by these bodies there is need for CAC to always collaborate with them to clarify issues” the group advised.

PROSAN further revealed that Pearlchris Properties with 10 per cent holding was owned by two former directors of International Energy Insurance who just bought the shares of the company few months from the floor of the Nigerian Stock Exchange, NSE for hostile takeover of the company without respect for other ninety per cent shareholders of the company.

According to the group “If you look critically at the agenda of the EGM, the first agenda is to convert the proposed EGM to an AGM which is by our understanding is a hostile takeover of our company if not for the timely intervention of National Insurance Commission (NAICOM) by dissolving the Board for proper investigation.”