Resort Savings makes board changes amidst suspension furor

As the suspension of the company on the Nigerian Stock Exchange (NSE) continued to generate uproar, the board of Resort Savings and Loans Plc met on Wednesday to appoint a new chairman and substantive managing director for the troubled mortgage bank.

At the board meeting at the company’s head office in Ikeja, Lagos late into Wednesday evening, the directors of the company appointed Barrister Jideofor Chukwuocha as the new chairman of the company, replacing Chief Babatunde Adefarati.

The board also appointed Mr. Ola Oyinloye as the substantive managing director of the company.

Chief Adefarati resigned after intense struggle for his ouster with another board member, Senator Fajinmi laying claim to the chairmanship.

Chukwuocha, has been a director of Resort Savings since 2012. The secretary to the company, LPC Solicitors, has been mandated to notify all regulatory authorities of the decisions of the board.

In a confirmatory email on the appointments, the board stated that the new appointments were part of efforts to reposition the mortgage company.

Directors of the company stated that they expected the new chairman to bring his wealth of experience as a successful businessman to reposition the mortgage bank in its ongoing restructuring exercise.

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“The board wishes to assure its numerous customers and other stakeholders that the mortgage bank has been further strengthened while supporting the policies of the Federal Government in making affordable accommodation available to Nigerians,” the board stated.

The NSE had on Tuesday December 6, 2016 placed full suspension on the shares of Resort Savings as capital market regulators launched investigation into allegations of corporate governance abuses against the management and directors of the mortgage banker.

“In compliance with the provisions of Section 35 of the Investments and Securities Act, 2007 and in order to give effect to the above directive, the Exchange will suspend full trading in the securities with effect from Tuesday 06 December 2016. The suspension will remain in force until further directives from the SEC,” the circular indicated.

 

 

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