In readiness for its imminent demutualisation, the Nigerian Stock Exchange (NSE) has inaugurated a five – man panel to serve as an independent alternative dispute resolution mechanism for the review and determination of Claims made by individuals or entities in respect of any assertion of rights in the shares of the demutualised Exchange i.e. Nigerian Exchange Group Plc (“HoldCo”).
The NSE in pursuant to the provisions of the Demutualisation of The Nigerian Stock Exchange Act 2018 (the “Act”) named Mr. George Etomi (Chairman), Mr. Seni Adio, SAN, Mr. Abatcha Bulama, Dr. Paul Anababa, SAN and Prince Aghatise Erediauwa as members of the Panel.
The National Council of the NSE had on Wednesday announced the appointment of Mr. Oscar Onyema to serve as Group Chief executive officer of the Nigerian Exchange Group Plc, while Temi Popoola was appointed as the chief executive of officer of the Nigerian Exchange Limited and Tinuade Awe as CEO of NGX.
Demutualization is the process where by an exchange is converted from a company/entity owned by members or brokers, to one in which members of the public can buy shares.
The Panel will sit in an appellate capacity and review Claims from Claimants’ who are dissatisfied with any decision of the National Council of The Exchange on a Claim pre-demutualization, or the Board of Directors of the HoldCo , post demutualisation of The Exchange.
“As part of the demutualisation process, The Exchange (which is currently a company limited by guarantee) would be converted into and re-registered as a public company limited by shares. Consequently, current Members of The Exchange will be allocated shares in the HoldCo.
“The securities exchange license of the current Exchange would be transferred to Nigerian Exchange Limited, a wholly-owned subsidiary of the HoldCo, which would carry on the securities exchange business. Another wholly-owned subsidiary, NGX Regulation Limited, would be licensed by the Securities and Exchange Commission (SEC), to carry out regulatory services.
“To safeguard the independence of the Panel, and following a diligent search for distinguished individuals with the required expertise and extensive track records of integrity, excellence, and achievements in their respective fields of specialisation,
At the Panel’s inauguration , Otunba Abimbola Ogunbanjo, President, The Nigerian Stock Exchange, said he “expected members of the Panel to discharge their responsibilities without any fear or favour in an objective and dispassionate manner, being guided by principles of fair hearing, equity and natural justice”.
He expressed optimism that the Panel would diligently carry out its functions and responsibilities under the Act and that each member would bring to bear their respective experience and expertise to enrich deliberations and decisions.