Business
Nigerian Stock Exchange gets approval to go public
Owner-members of the Nigerian Stock Exchange (NSE) has approved the demutualisation programme of the Exchange under which the Exchange will convert from its present status of non-profit, mutually owned status to a profit-making public limited liability company with shareholders.
At the Extra-Ordinary General Meeting (EGM) at the Stock Exchange House in Lagos, members of the Exchange passed three resolutions authorizing the council and management of the Exchange to proceed with the process leading up to the demutualisation of the Exchange.
Members also ratified and approved the engagement of financial advisers, legal advisers, tax advisers and any other adviser that may be required for the demutualisation while the meeting equally mandated the council and management of the Exchange to do all such things and exercise all such powers as may be necessary or incidental to achieving the demutualisation subject to applicable laws and regulations and obtaining the approvals of members and the relevant regulatory authorities.
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President, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede said the approval of the NSE demutualisation plan marks the achievement of an important milestone towards completion of the exercise.
“The demutualization of the Exchange will bring the Nigerian capital market on a par with other international jurisdictions, result in enhanced governance, transparency and visibility whilst attracting strategic partners, investors and good quality issuers. These are historic times indeed,” Aig-Imoukhuede said.
Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the approval of the demutualisation process will generate substantial motivation for the development of an agile Exchange thereby consolidating its innovativeness and strengthening its leadership both at local and international levels whilst also adding value to its stakeholders.
According to him, as a demutualized entity that is profit-seeking, the NSE will be in a better stead to capitalize on new income opportunities, free from any limitations arising from conflicting member interests and existing laws and more importantly be able to better support the economic growth of Nigeria.
Demutualisation is the process through which any member owned organisation becomes a shareholder-owned company.
Basically, it refers to the conversion of a non-profit, mutually owned company to a for-profit entity limited by shares. Demutualisation segregates ownership and management from the trading rights of the members of an exchange.
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yanju omotodun
March 31, 2017 at 9:10 am
Good initiatives ,at least we ordinary member of the public can invest in the stock market. I want to be a shareholder too in the stock market.
seyi jelili
March 31, 2017 at 10:13 am
You think it is for both dogs and goats because they called it public liability limited company . It is not for the poor but the rich who can take risk.
Animashaun Ayodeji
March 31, 2017 at 9:57 am
Now that the president claimed demutualization of the exchange will bring about enhanced governance and transparency, I hope they won’t start telling us stories about fraudulent activities very soon
Roland Uchendu Pele
March 31, 2017 at 4:42 pm
We must now learn even more how to expect less as we hope for more. Nigeria can be heartbreaking when given so much of the former.
Anita Kingsley
March 31, 2017 at 10:23 am
Everything is fast falling in place and working for good. This is a remarkable development, Nigeria will get there, we only need to keep working hard.
JOHNSON PETER
March 31, 2017 at 12:35 pm
The only thing I see special in this initiative is that, it will make the NSE accountable to the public and also pave way for local and small investors to start investing in the stock market.
Agbor Chris
March 31, 2017 at 4:50 pm
If these are only special things you see in it, then, they are worth great things and this are signs that Nigeria’s future is looking good. Without much talk, it’s a great initiative