A group representing minority shareholders of the Tourist Company of Nigeria, the parent company of the Federal Palace Hotel, has appealed to the Securities and Exchange Commission to intervene in what it described as a lingering management crisis in the firm.
The appeal was made during a protest at the SEC headquarters in Abuja by the group, led by Dr Olatunde Okelana, Chairman of the Zonal Shareholders Mobilisation Committee, according to a statement on Thursday.
Addressing the protesters, Okelana said the demonstration was organised to draw the regulator’s attention to the challenges minority shareholders of TCN have endured for several years.
“Although the SEC has taken steps within its statutory powers as the supervisory authority of the capital market, it has unfortunately failed to enforce its own pronouncements on this matter,” he said.
“The minority shareholders have faced challenges for quite some time. The SEC has done what it could within the law, but unfortunately, it has been reluctant to enforce its decisions. We think there is an external influence preventing the SEC from enforcing its rules,” Okelana added.
He further noted that the company’s affairs were being managed without accommodating the interests of minority shareholders. “Minority shareholders no longer have a say in how the company is run,” he said.
Okelana also highlighted that TCN failed to hold its Annual General Meeting last year, resulting in no dividends being paid to shareholders, which has deepened frustrations among minority investors.
“That is why we are here, so the management of the SEC can listen to us. Minority shareholders are tired of the inaction. If the SEC fails to intervene, shareholders will continue to suffer, be denied dividends, excluded from decision-making, and see their funds eroded,” he said.
He appealed to the Federal Government to urgently direct the SEC to act decisively in protecting minority shareholders’ interests. On the next steps, Okelana said the group plans to meet members of the Senate Committee on Capital Market, which also has oversight powers over the SEC.
“We want the interim board nominated for the company to be allowed to run its affairs so that these issues can be addressed,” he added.
Secretary-General of the Liberated Shareholders Association, Prince Ridwan Hamza, alleged that the conduct of majority shareholders in TCN and other companies had consistently disadvantaged minority investors.
He urged the SEC to intervene promptly to ensure accountability and transparency in the management of TCN and related organisations.
