The Securities and Exchange Commission on Thursday dissolved the board of Ikeja Hotels and appointed a new one to act on the interim.
The capital market regulator said it had to take the decision it described as “proactive measure,” due to unresolved internal crisis involving some majority shareholders of company.
The Commission said the action became necessary to pre-empt the warring factions in the crisis take certain actions that would be detrimental to the continued growth of the company.
“To forestall chaos in the organization, the Commission and other distinguished personalities, had previously held various meetings with the existing Board towards resolving the crises.
“But, the company continued to be plagued with unhealthy Corporate Governance practices, including disregard to the Code of Corporate Governance for public companies,” the commission said in a statement.
The statement said as a public company, it was paramount that the activities of the company were conducted within the confines of existing corporate governance regulations in the Nigerian capital market, to ensure the protection of minority shareholders and other investors.
“Having failed to resolve its lingering crisis, the Commission in exercise of the powers conferred on it by the Investment and Securities Act, 2007 to protect investors and the integrity of the securities market, hereby approves the appointment of an interim Board for the company with Chief Anthony Idigbe, SAN as interim Chairman,” the statement said.
The interim board, among others, is mandated to oversee the conduct of a forensic investigation into the affairs of the company.
“It is the Commission’s expectation that the shareholders and key Management staff of the company will work with the new team to ensure that the fortunes of the company are restored in the shortest possible time” the statement added.