Members of the Nigerian Stock Exchange, NSE, at the Extra-Ordinary General Meeting, at the Stock Exchanghe House, Lagos on Thursday have approved its demutualisation programme.
At the meeting, Patrick Ezeagu, President Association of Stockbroking House of Nigeria (ASHON), supported by Emeka Madubuike, Past President of ASHON moved the motion for the authorisation of the National Council and Management to proceed with the process leading up to the Demutualisation of The Exchange.
They also moved the ratification of the engagement of financial advisers, legal advisers, tax advisers and any other adviser that may be required for the Demutualisation and also authorized the Council “to do all such things and exercise all such powers as may be necessary or incidental to achieving the objective.”
The motion was unanimously adopted by members present with a show of hand after which the NSE Council President, Aigboje Aig-Imoukhuede read out the prayers, with Oluwaseyi Abe, President Chartered Institute of Stockbrokers and Oladipo Williams, moving and seconding. The members thereafter voted unanimously in favour of the three prayers.
Speaking after the meeting, Aig-Imoukhuede noted that “the approval of the NSE demutualisation plan marks the achievement of an important milestone towards completion of the exercise.
“The demutualization of the Exchange will bring the Nigerian capital market on a par with other international jurisdictions, result in enhanced governance, transparency and visibility whilst attracting strategic partners, investors and good quality issuers. These are historic times indeed”.

Also commenting on development, the Chief Executive Officer, NSE, Oscar Onyema, noted that “the approval of the demutualisation process will generate substantial motivation for the development of an agile Exchange thereby consolidating its innovativeness and strengthening its leadership both at local and international levels whilst also adding value to its stakeholders.
“As a demutualized entity that is profit-seeking, the NSE will be in a better stead to capitalize on new income opportunities, free from any limitations arising from conflicting member interests and existing laws and more importantly be able to better support the economic growth of Nigeria”.
Demutualisation is the process through which any member owned organisation becomes a shareholder-owned company. Basically, it refers to the conversion of a non-profit, mutually owned company to a for-profit entity limited by shares.
Demutualisation segregates ownership and management from the trading rights of the members of an exchange.
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