By Udeme Ekwere

Monday, 1 Nov 2010

A former Director-General of the Securities and Exchange Commission, Mr. Wole Adetunji, has called for the urgent amendment of the Companies and Allied Matters Act in Nigeria.

This, according to him, is important as most of the positions in the Act are outdated and out of practice in other developed countries.

Adetunji, who is also the Chairman, Chartwell Securities Limited, spoke on the sidelines of a press conference on the forthcoming PEARL Awards Nite in Lagos on Friday.

He said, ”It is important that government makes a clear attempt towards amending CAMA here in Nigeria. The Act we are using here in Nigeria was obtained since 1990 in line with Britain, and has not been amended since that period. Meanwhile, the United Kingdom, from which we obtained the CAMA, amends its Act every six months.

”So, as a matter of urgency, the concerned authorities should work hard in ensuring that the proper changes are put in place because a lot of positions that we currently have in CAMA have become moribund.”

He also said that there was the need for government to be consistent in its policies, adding that a lot of challenges that quoted companies were facing in the country was as a result of inconsistencies in policies.

In his speech, the Chairman, PEARL Awards Project, Mr. Umar Abdullahi, noted that there was the need to reward companies that performed well in their activities despite the harsh operating environment and the global economic meltdown experienced in the past few years.

He said, ”While we are aware that the capital market is not fully out of the woods, the PEARL Awards Boards of Governors is pleased to note the far-reaching reforms being initiated in the market. We fully identify with the reforms initiated by SEC in restoring sanity to the market and boosting investor confidence in the stock market.

”The board has, therefore, considered the need to identify and reward quoted companies that, in spite of the vagaries of the economy, have outperformed others. Hence, it is our resolution to hold the 15th edition of the PEARL Awards on November 28, 2010 in Lagos.”

Source: Punch