The Financial Reporting Council of Nigeria says it is set to hold a public hearing on the proposed National Code of Corporate Governance.
The agency had cancelled the public hearing last month after a court injunction stopped it from holding it.
The FRC, in a statement on Tuesday, said it had been granted a leave to hold the hearing by a Federal High Court in Lagos.
The statement read in part, “The Financial Reporting Council of Nigeria has been granted leave to hold public hearing on the proposed National Code of Corporate Governance in Nigeria.
“This follows a vacation of the exparte injunction by Justice O.E Abang of a Federal High Court in Lagos, restraining FRC from proceeding with the public hearing on an earlier scheduled date. The court varied the order following its concurrence with the objection of the counsel to the FRC, Dr. Fabian Ajogwu, SAN.”
The public hearing was supposed to start on May 19 before the injunction by a group of shareholders who objected to certain provisions in the draft National Code of Corporate Governance.
The FRC Spokesperson, Mr. Mack Ogbamosa, said the public hearing would now hold in Lagos on June 30 for public and private sectors and July 2 for not-for-profit organisations.
He said when adopted, the new NCCG would replace the six existing codes currently in operation.
The different bodies currently operating with the six codes are: the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, National Insurance Commission, Securities and Exchange Commission, Corporate Affairs Commission, and Nigerian Communications Commission.
Ogbamosa said since the existing codes lacked legal backing for compliance, the enforcement of financial standards breaches would not be possible. Hence, the need for the NCCG to ensure full compliance and sanctions.
Identifying the benefits of the NCCG, the FRC spokesperson said it would lead to increased management credibility, more long-term investments, lower cost of capital and higher shares value.
He also said the adoption of the NCCG would bring about more disclosure of information by entities to enable both local and foreign investors as well as lenders make more sound investment decisions and risk assessment respectively.
“It is obvious to all now that financial statements published by entities in Nigeria are fuller; with more disclosures of the activities of the companies they have invested in. As such, the risk of loss of their investments is low because activities in the capital market are driven by informed decisions,” he added.
Punch