- Chairman, director to retire before May next year
Seplat Energy Plc has announced major impending changes in its board composition as the indigenous energy group embarked on restructurings to strengthen its corporate governance.
In a regulatory filing yesterday, Seplat stated that an independent non-executive director, Professor Fabian Ajogwu, will step down from the board on October 21, 2023.
Ajogwu resigned from the board, citing recent events and external interferences, which have prevented him from effectively discharging his fiduciary and statutory duties as an independent non-executive director to the highest standards of corporate governance he has written and subscribed to.
The company, however, said the departing director has confirmed in writing his support for the steps the company is taking to strengthen governance, while expressing his dismay “over the actions of those who have tried to damage Seplat Energy and derail its efforts to improve corporate governance”.
Seplat Energy had been mired in controversy over corporate governance issues, which snowballed into an immigration case against the company, some directors and officers. The immigration case was, however, withdrawn recently after the company engaged the Federal Ministry of Interior.
Seplat confirmed yesterday that it is “now focused on engagements with the Minister of Interior to bring closure to all outstanding issues”.
According to the company, looking ahead at the likely completion timetable for the ongoing proposed acquisition, the restructuring and the time needed to strengthen its governance, it has developed a board of directors’ succession forward plan to underpin the transition and business transformation envisaged over the next 12 months.
The Chairman, Mr. Basil Omiyi and the senior independent non-executive director, Dr. Charles Okeahalam, will retire from the board before the May 2024 Annual General Meeting(AGM).
“The company will embark immediately on a recruitment to run a search for the next Seplat Energy Chairman. As part of that process, the Independent Non-Executive Directors of the Board, who qualify to be Chairman of the company, will also be evaluated.This is in line with the Companies and Allied Matters Act (CAMA), whereby the successor Chairman must already be a Director of the company and will be voted in by the other directors by a simple majority.
“We expect the recruitment to be completed before the end of 2023, with the chairman’s election to follow thereafter,” Seplat Energy stated.
The board of the company reiterated its commitment to enhancing the corporate governance at the company and establishing a truly independent board.
According to the board, despite the recent targeted attacks aimed at derailing that process, the board remains strong and resolute in completing the task of enhanced corporate governance.