In order to protect minority shareholders, the Independence Shareholders Association of Nigeria (ISAN) has promised to increase its advocacy efforts with regulators on matters that contradict with the interests of investors.
Sir Sunny Nwosu, Chairman of the ISAN Universal Academy and Coordinator Emeritus, stated that the association is making every effort to uphold high standards for other shareholder groups, encourage constructive engagement among shareholders, and prevent shareholders from sleeping on their rights.
Nwosu stated that the goal of the weekend’s one-day stakeholders’ interactive dialogue in Lagos, which had the theme “CAC Guidelines on Proxies AGMS of Public Companies Post COVID-19: Matters Arising,” was to retool the new normal that will rule the world in 2020 as a result of the global health challenge known as the COVID-19.
“COVID-19 ushered in public health uncertainties that disrupted international economic order. The pandemic which touched all sectors of the economy led to a new normal that metamorphosed into remote operations.
“As the new normal evolved in response to COVID-19, the pandemic accelerated the mandate for the digital revolution, as many companies embraced and adjusted to the use of remote technology,” he said.
The instructions on the use of proxies by public corporations for the annual general meetings (AGMs), which were previously announced by the Corporate Affairs Commission (CAC) Registrars-General (RG), A.G. Abubakar, will no longer be in effect as of January 1, 2023.
The rules will no longer be in effect after December 31, 2022, according to Abubakar, who was present and represented by Assistant Director, RG’s Office, CAC, Tolu Sonaike. He also mentioned that a public notice to that effect was released last Monday. As a result, it is envisaged that all publicly traded firms that have been given the go-ahead to hold their AGMs via proxies will do so no later than this date. On Monday, November 21, 2022, a public notification to this effect was released, ” he stated.
In order to address specific issues during the COVID-19 pandemic and make it easier for these companies to comply with legal requirements, Abubakar noted that the instructions on the usage of proxies by public companies in holding AGMs were issued.
He emphasized that the standards were no longer necessary because of the pandemic’s compelling conditions.
He also emphasized the necessity for public firms to guarantee adherence to the new guideline.
“Notwithstanding whatever benefits, holding AGMs by proxies may have afforded the companies, the option is at the instance of individual members of the company and may not be foisted on any member,” he said.
He also praised ISAN for being a forward-thinking organization dedicated to the interests of its members and the overall economy.
In addition, Seyi Owoturo, president of the Institute of Capital Market Registrars (ICMR), stated that the Federal Government has directed CAC to solve physical distance by introducing AGMs via proxies.
The guidelines, according to Owoturo, who was represented by Catherine Nwosu, Second Vice Chairman, ICMR, were very helpful during COVID-19 since they allowed public firms to hold AGMs like other nations around the world.
Additionally, he praised ISAN for its contributions to the successful conduct of AGMs of public businesses in Nigeria.
