By Nkiruka Nnorom
In preparation for its imminent demutualisation, the Nigerian Stock Exchange (NSE) has inaugurated a Claims Review Panel that will oversee the review and determination of claims made by individuals or entities in respect of any assertion of rights in the shares of the demutualised Exchange – Nigerian Exchange Group Plc, a Holding Company (HoldCo) for the group’s member companies.
The panel, which would serve as an independent alternative dispute resolution mechanism for the HoldCo, will sit in an appellate capacity and review claims from individuals and organisations who are dissatisfied with any decision of the National Council of the Exchange on a claim pre-demutualisation, or the Board of Directors of the HoldCo, post demutualisation of the Exchange.
Members of the panel include: Mr. George Etomi, Chairman, Mr. Seni Adio, (SAN), Mr. Abatcha Bulama, Dr. Paul Anababa, (SAN) and Prince Aghatise Erediauwa.
Speaking at the panel’s inauguration, Otunba Abimbola Ogunbanjo, President, The Nigerian Stock Exchange, encouraged members of the panel to discharge their responsibilities without any fear or favour in an objective and dispassionate manner, being guided by principles of fair hearing, equity and natural justice.
He expressed optimism that the panel would diligently carry out its functions and responsibilities under the the demutualisation Act and that each member would bring to bear their respective experience and expertise to enrich deliberations and decisions.
As part of the demutualisation process, The Exchange (which is currently a company limited by guarantee) would be converted into and re-registered as a public company limited by shares.
Consequently, current members of the Exchange will be allocated shares in the HoldCo. The securities exchange licence of the current Exchange would be transferred to Nigerian Exchange Limited, a wholly owned subsidiary of the HoldCo, which would carry on the securities exchange business.
Another wholly owned subsidiary, NGX Regulation Limited, would be licensed by the Securities and Exchange Commission (SEC) to carry out regulatory services.