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.
Read also: NSE LIVE! High-cap stocks drag equities down
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.
RipplesNigeria ….without borders, without fears
Join the conversation
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...
INVESTIGATION….N.3bn down the drain: Why water projects for Enugu communities don’t work
In this concluding part, ARINZE CHIJIOKE talks about some of the projects that are serving the people and how various WASH programmes have failed to tackle...
INVESTIGATION…PARKVIEW ESTATE: Exclusive images of how billionaire property developer incurred Lagos govt‘s anger
Many have seen the demolished building, but not many know the circumstances that led to the teardown of the about...
INVESTIGATION… N.3bn down the drain, as Enugu communities suffer from dry taps
In November 2020, three organizations and the Enugu State government celebrated the completion of N300 million worth of projects that were expected...
INVESTIGATION… How herdsmen crisis compounds woes of already deprived Ogun communities
Earlier in January, the Nigerian media space was awash with reports of violence between herders and farmers across the country....