TCN's minority shareholders urge SEC to enforce its directives, 'save them from frustration'

TCN’s minority shareholders urge SEC to enforce its directives, ‘save them from frustration’

Khalid ABRAHAM

A group representing minority shareholders of the Tourist Company of Nigeria (TCN), the parent company of the Federal Palace Hotel, Lagos, has appealed to the Securities and Exchange Commission (SEC) to intervene in the lingering management crisis in the company.

The group, led by Sir Olatunde Okelana, chairman of the Zonal Shareholders Mobilisation Committee, made the appeal during a protest at the headquarters of the Securities and Exchange Commission in Abuja last week.

Addressing the protesters, Okelana said the demonstration was organised to draw regulator’s attention to the challenges minority shareholders of the Tourist Company of Nigeria have endured for several years According to him, although the SEC had taken steps within its statutory powers as the supervisory authority of the capital market, it had allegedly failed to enforce its own pronouncements on the matter.

“The minority shareholders have faced challenges for quite some time.

“The SEC has done what it could within the law, but unfortunately, it has been reluctant to enforce its decisions.

“We think there is an external influence preventing the SEC from enforcing its rules,” Okelana said.

Sir Olatunde Okelana

He said affairs of the company are being conducted without minority shareholders.

“Minority shareholders no longer have a say in how the company is run,” he added. Okelana further complained that the company failed to hold its Annual General Meeting (AGM) last year, resulting in no dividends being paid to shareholders.

He said this had deepened frustrations among minority investors.

“That is why we are here, so the management of the SEC can listen to us. “Minority shareholders are tired of the inaction.

“If the SEC fails to intervene, shareholders will continue to suffer, be denied dividends, excluded from decision-making, and see their funds eroded,” he said.

He appealed to the Federal Government to urgently direct the SEC to act decisively in protecting minority shareholders’ interests.

On further steps, Okelana said the group plans to meet members of the Senate Committee on Capital Market, which also has oversight powers over the SEC.

“We want the interim board nominated for the company to be allowed to run its affairs so that these issues can be ad-dressed,” he added.

Secretary-General of the Liberated Shareholders Associ ation, Ridwan Hamza, alleged that the conduct of majority shareholders in TCN and other companies had consistently disadvantaged minority investors.

He urged the SEC to intervene promptly to ensure accountability and transparency in the management of TCN and related organisations.