Chuks Udo Okonta
Shareholders have kicked against the new
regulation by the National Insurance Commission NAICOM and Security and
Exchange Commission (SEC) on the selection and years of service of companies’ audit
committee, saying it contravenes the law.
Inspen gathered that the new law
provides that members of audit committee should have accounting knowledge and
should serve for a specified period.
The National Co-ordinator, Independent
Shareholders Association of Nigeria (ISAN), Sunny Nwosu, who spoke at a forum
in Lagos, said shareholders will challenge the decision in court, adding that
for such law to take effect the Companies
and Allied Matters Act (CAMA), should first be amended.
He reproved some insurance companies
that forced members of their audit committee to leave their positions, adding
that the regulation is anti minority shareholders. He said while shareholders
are forced to leave their positions, directors who have been on the board of
these companies are allowed to remain.
No comments:
Post a Comment