By Tosin Olatokunbo
Oscar Onyema, the group Managing Director/ Chief Executive officer of the Nigeria Exchange Group, NGX has resigned his position as a non-executive director of The Exchange. His resignation comes on the backdrop of a petition by a human rights group, Nigeria for All Nigerians, NAN for him to resign from NGX as a director to avoid conflict of interest.
His resignation was announced on Thursday by the Chairman, NGX, Abubakar Mahmoud who said Onyema’s resignation was in the best interest of The Exchange and all stakeholders in the market.
“On behalf of the Board and Management of The Exchange, I extend our heartfelt gratitude to Mr. Onyema for his selfless service to The Exchange. As he transitions into this new phase as the GMD/CEO of a listed company, we reiterate our commitment to act in the best interest of all Issuers to the benefit of all stakeholders in the capital market,” Mahmoud said.
NAN had called on Onyema to step aside as NGX director arguing that his continued stay in that postion and CEO of the quoted NGX Group breached extant rules and international best practices.
The group, in a statement by Dele Ajanaku, its Secretary General said, “the impending listing by introduction of the shares of NGX Group on the main Board of NGX ltd with effect from October 13, 2021 vis-a-vis Mr. Onyema’ s portfolio in the two companies will be a violation of Rule 184(2)(a) on the status of Mr. Oscar Onyema as the CEO of NGX Group while also serving as a Non-Executive Director of NGX Limited.
“Rule 184 (2) states that a securities exchange shall have a code of conduct for its council members or Board which shall be approved by the Commission and shall contain provisions that the council members or Board shall not be staff of a quoted company and its subsidiaries.
Ajanaku stated further that, “the purpose of this provision is to forestall a situation where a Council or Board member of an Exchange would be in a position to extend special privileges or exercise undue influence towards a listed company which he/she works for.”
“In the scenario under review, by virtue of his position as CEO of NGX Group, Mr. Onyema is a staff/employee of the company. Given that he also serves a non-executive on the NGX Ltd, the Exchange on which NGX Group is set to be listed, Mr. Onyema would (if permitted to hold both portfolios), be in contravention of Rule 184(2).
““it is recommended that the Commission should request Mr. Onyema to relinquish one of the portfolios he is currently occupying so as to comply with Rule 184(2),” NAN said.
Onyema who served as chief executive of the Nigerian Stock Exchange, NSE took up the role of GMD/CEO of the NGX Group after the demutualization of the NSE. He had completed his mandatory 10-year term as NSE boss.
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