SEC versus Oando: Court hearing adjourned to July 22

Wole Olajide

The legal tussle between Securities and Exchange Commission (SEC)and Oando Plc seems to have taken another dimension as counsels to Oando and its Directors made a motion of Application for consolidation of the cases to be treated as a whole.

 

SEC being the apex regulator as far as the capital market is concerned did a forensic audit on Oando. From the result according to SEC, Oando has committed an infraction and because of that, they sought court support to ban oando management from holding position and asked them to resign.

 

On May 31, SEC ordered Oando’s Group Chief Executive Officer, Mr Wale Tinubu, and other affected board members to resign. But the company immediately replied, saying the alleged infractions and penalties were unsubstantiated, ultra vires, invalid and calculated to prejudice the business of the company.

 

However, the Federal High Court sitting in Lagos granted an interim injunction on June 3 following an application by Oando’s GCEO and his deputy, restraining SEC from executing the sanctions.

 

SEC had announced on Monday June 10 that it had suspended Oando’s AGM slated for Tuesday, June 11, 2019 till further notice “further to the ex-parte order of the Federal High Court, Ikoyi Lagos in Suit No: FHC/L/CS/910/19 in Mr Jubril Adewale Tinubu & Anor V Securities and Exchange Commission & Anor.”

 

At the court hearing yesterday, June 24, 2019 presided by Justice Faji, about four different cases related to rift between Securities and Exchange Commission and Oando were delibrarted on.  The first case was Suit No: FHC/L/CS/910/19 between Securities and Exchange Commission and Mr Jubril Adewale Tinubu.  Other cases were Suit No: FHC/L/CS/911/19; Suit No: FHC/L/CS/964/19 and Suit No: FHC/L/CS/965/19 all related to the case between SEC and Oando.

 

At the resumed hearing, Mr Yele Delano, announced appearance for Oando and expressed the company’s intention to be joined in the suit, as well as sought consolidation of similar suits pending before the court.

Delano was said to have also sought an adjournment to enable him to file his processes in the suit.

 

Chief Anthony Idigbe, Counsel to SEC however raised an objection to Oando’s request for joinder on the grounds that it would pre-determine the respondent’s case.

He further argued that the party in question has not formally processed the application for consolidation, it was only a mere oral expression.

The counsel to the applicants, Mr Tayo Oyetibo, argued in favour of the request for joining and urged the court to allow the party seeking to be joined in the suit.

According to him, if the court refuses the application for joinder and the party goes on to appeal, then the applicant will be affected.

 

 

Justice Ayokunle Faji, after considering several argument gave a ruling that time should be giving other parties to file their application and the case be adjourned to ensure fair hearing.

 

The Judge gave 48 hours to all parties involved to file their application. The 4th of July is scheduled to conclude motion for consolidation of cases and July 22, 2019 is scheduled for the substantive hearing of the case as a whole.

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