A group representing minority shareholders of the Tourist Company of Nigeria (TCN), parent company of the Federal Palace Hotel, has called on the Securities and Exchange Commission (SEC) to intervene in what it described as a prolonged management crisis.
The appeal was made during a protest at the SEC headquarters in Abuja. The group was led by Dr Olatunde Okelana, Chairman of the Zonal Shareholders Mobilisation Committee, according to a statement issued on Thursday.
Addressing protesters, Okelana said the demonstration was aimed at drawing the regulator’s attention to challenges minority shareholders of TCN have faced 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.
He alleged that minority shareholders have been sidelined in the company’s affairs.
“Minority shareholders no longer have a say in how the company is run,” Okelana stated.
He also claimed that TCN failed to hold its Annual General Meeting last year, resulting in no dividends being paid to shareholders and further heightening frustrations among 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.
Okelana appealed to the Federal Government to direct the SEC to act decisively in protecting minority shareholders’ interests.
He added that the group plans to meet with members of the Senate Committee on Capital Market, which has oversight responsibility 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 said.
Also speaking, Secretary-General of the Liberated Shareholders Association, Prince Ridwan Hamza, alleged that the conduct of majority shareholders in TCN and other firms has consistently disadvantaged minority investors.
He urged the SEC to intervene promptly to ensure accountability and transparency in the management of the company.
