Improve your scrutiny of financial statements of public companies, SEC CEO tells shareholders – The Whistler Newspaper
The Securities and Exchange Commission has urged shareholders of listed companies to continue to uphold high ethical standards and promote new strategies to enhance the accountability of market participants in the Nigerian capital market.
SEC Chief Executive Officer Mr. Lamido Yuguda said so at the 2022 edition of the Independent Shareholders Association of Nigeria Triennial Delegates Conference.
Yuguda said that in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the Commission issued a code of conduct for members of shareholder associations to guide their conduct at general meetings of public companies and their relations with public companies.
According to him, this code is still in force and aims to ensure the highest level of conduct between members and the companies with which they interact as shareholders.
He said, “The code is designed to ensure that members of the association uphold high ethical standards and make positive contributions by ensuring that the affairs of public companies are conducted in an ethical and transparent manner in accordance with the Nigerian code. Corporate Governance Guidelines and the SEC Corporate Governance Guidelines.
“I urge you to continue to uphold this Code of Conduct for Members of Shareholder Associations by exercising discipline and ensuring good governance.
“We therefore urge this association to continue to improve the performance of the monitoring function of companies in order to contribute to their growth by reviewing reports and audited accounts before general meetings in order to raise relevant observations on key areas.”
The SEC CEO urged shareholders to continue promoting their core businesses which focus on protecting minority shareholders, advancing corporate governance and developing a deep and robust capital market.
He described the theme of the conference which focuses on reforming the judiciary to stabilize and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
“The judiciary has also contributed to the development of the capital market through its adjudicative role on issues involving capital market stakeholders.
“As the SEC continues its important regulatory work to protect both
foreign and domestic investors who invest their funds in the Nigerian capital market, we will continue to partner with and engage the judiciary and other relevant stakeholders,” he added.
Yuguda said that in an increasingly competitive global environment for capital flows, foreign investors consider the strength and independence of a regulator in their investment decisions.
He said it is therefore an urgent national priority to continue to send the right signals to the world of investors that the Nigerian capital market is indeed well regulated by a strong and independent SEC, devoid of confrontational interference from the any branch of government.