Adewale Tinubu, embattled chief executive officer of Oando Plc, has obtained a court injunction against the Securities and Exchange Commission (SEC).
According to court papers seen on Monday, Tinubu filed an application before the federal high court in Lagos.
The injunction, with suit number FHC/L/CS/910/19, restrained SEC and Mutiu Sunmonu from taking any step on the N91.1 million fine imposed on Tinubu.
SEC and Mutiu Sunmonu were listed as the first and second respondent respectively.
SEC had appointed Sunmonu as the interim head of the company till July 1, the deadline set for an extraordinary general meeting where directors are scheduled to be appointed.
“An order interim injunction restraining the 2nd Respondent from acting as the head of the interim management of Oando Plc pending the hearing and determination of the Applicants’ Motion for Interlocutory Injunction,” the court papers read.
“An order staying and or suspending the execution or the enforcement of the 1st Respondent’s decision contained in its letter of 31st May 2019 imposing a fine o fN91,125,000.000 on the 1st Applicant and barring the Applicants from being directors of public companies for a period of 5 years pending the hearing and determination of the Applicants’ Motion for Interlocutory Injunction.”
The commission had said it launched an investigation into the activity of Oando after receiving petitions from shareholders, accusing the company of financial misappropriation.
“The SEC has to step in to serve as deterrence to other public quoted companies that are either involved in a breach of corporate governance or contemplating it,” it said in a statement released on Monday.
The SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected Board members to the company.
“It maintains its zero tolerance to market infractions, and reiterates its commitment to ensuring the fairness, integrity, efficiency and transparency of the securities market, thereby strengthening investor protection.”
The commission said the move would discourage market infractions.