The Securities and Exchange Commission (SEC) has urged shareholders to continue to uphold high ethical standards and promote new strategies to strengthen accountability amongst market participants in the Nigerian Capital Market.
The advise was given by the director-general of SEC, Mr. Lamido Yuguda, during the 2022 edition of the Independent Shareholders Association of Nigeria(ISAN) Triennial Delegates conference held in Lagos recently.
Yuguda stated that in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the commission released a Code of Conduct for Members of Shareholders’ Associations to guide their conduct during general meetings of public companies and their relationship with public companies outside the general meetings, and for other purposes connected therewith.
According to him, this code is still in force, and is intended to ensure the highest standard of conduct amongst members and the companies with whom they interact as bona fide shareholders.
He said, “The code is designed to ensure that association members uphold high ethical standards and make positive contributions in ensuring that the affairs of public companies are run in an ethical and transparent manner in compliance with the Nigerian Code of Corporate Governance and the SEC Corporate Governance Guidelines.”
The SEC DG urged shareholders to continue to promote their core activities which centres on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market.
He described the theme of the conference which focuses on reforming the judicial system in order to stabilise and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
Yuguda stated 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 stated that it is therefore a matter of urgent national priority to continue to send the right signals to the investing world that the Nigerian capital market is indeed soundly regulated by a strong and independent SEC, devoid of conflicting interference from any arms of government.
Also, the SEC DG stated that, there is room for reform in the judiciary, especially, on issues around investor protection and dispute resolution mechanisms in the Nigerian capital market, adding that, the commission supports this reform and is happy to play a role in it.
