Stockbroker Condemns 5% VAT On Capital Market Transactions

[giwababatunde]

Shareholders of quoted companies have been advised to study the new code of corporate governance initiated by the Securities and Exchange Commission (SEC) in order to help monitor the activities of the their organisations.

Mr. Sola Oluwanuga, a member of the Investment and Securities Tribunal (IST) gave the advice during the 2nd Triennial conference of the Independent Shareholders Association of Nigeria (ISAN) in Lagos last week.

According to him, “The various shareholders’ association in the country must have a working knowledge of this code to serve as a watchdog and to ensure that its provisions are complied with.”

He called on shareholders to acknowledge their rights, privileges and responsibilities and ask questions that are relevant to the success of the company during general meetings.

“Shareholders should be able to use information and materials at their disposal to confront management on the operations of the company. They should be able to know if notices of meeting are sent within the stipulated 21 working days before Annual General Meeting (AGM), whether the terms and conditions of directors employment are approved by them, whether the interest of minority investors are represented by directors etc,” he stated.

He advocated the introduction of electronic voting in Annual General Meetings (AGM) as practiced in Ghana whereby shareholders who could not attend an AGM physically could still be part of the decision making process by casting their vote from wherever they may be.

He further declared that investors confidence is a vital ingredient in market development and urged shareholders’ association to enter into constructive engagement and collaboration with capital market regulators to ensure that their investments are protected.

He stressed the need for shareholders’ associations to thoroughly screen the various rules or decisions made by the regulatory authorities in the capital market, to determine whether the rule is expected to address their problems correctly, whether there is a legal basis for the regulation.