The Nation Newspaper

Tag: Directors

  • Perm Sec warns directors

    The Permanent Secretary Federal Capital Territory Administration (FCTA), Mr. John Chukwu, an engineer, has warned directors of the Administration to be alive to their responsibilities or face the music.

    He made this charge during an emergency meeting with the directors in charge of City Management and Cleaning, urging them to step up the tempo of activities to rid the city of garbage, street urchins, hawkers and other miscreants who pose security threats to the residents of the territory.

    In a statement issued by the Director, Information and Communication in the FCT Administration, Stella Ojeme, the Permanent Secretary also directed for the strict enforcement of policies and rules on the restrictions of movements of trailers and trucks between the hours of 8pm – 6pm within the city to forestall undue crashes.

    He urged the Social Development Secretariat to double its efforts by removing all street urchins and destitute to the designated locations for proper treatment.

    His words: “The half way home in Gwagwalada should be used to temporarily house the street children and beggars with cancers some of whom it has been established are pretenders out to scam the populace.”

    He mentioned in particular the sick destitute being paraded on the streets adding that the genuine cases among them should be taken to FCT hospitals for care and proper treatment at the expense of the Administration as part of our social community services to the less privileged.

    The Permanent Secretary also charged the Task Team on City Cleaning and Management to redouble efforts towards keeping the city clean from all encumbrances and appealed to residents for their understanding and co-operation.

     

  • Seplat to distribute N3.5b bonus shares to directors, others

    Seplat Petroleum Development Company Plc will issue bonus shares valued at more than N3.5 billion to directors and senior management staff of the oil exploration and production company, according to a document obtained yesterday.

    Seplat will issue the shares under its Long Term Incentive Plan (LTIP) at nominal cost to the company and distribute the ordinary shares to executive directors, non-executive directors and top management staff. Seplat’s share price opened yesterday at N336.05 per share.

    The LTIP consists broadly of two components including share incentives related to the company’s successful global initial public offering and annual share bonus.

    Under the global IPO bonus scheme, the company will issue ordinary shares to its executive directors and senior management as a reward for their contribution to achieving a successful global offer as stated in the prospectus dated April 9, 2014. A total of 7.75 million ordinary shares qualify as global offer bonus shares out of which 3.87 million shares vest immediately but will be held till 2015 and 3.873 million shares will vest after two years.

    Also, the company will also issue unspecified ordinary shares under its annual share incentive scheme.  The annual bonus scheme is a performance-related deferred annual bonus award by reference to performance against objective performance targets during the previous financial year.

    Also, as part of the global offer bonus, Seplat will issue shares to all non-executive directors who have served on its board for at least nine months as at the date of the global offer. Under this incentive, the non-executive directors are eligible to subscribe to ordinary shares of the company with an equivalent value of 200,000 pounds based on the United Kingdom’s global offer share price at the nominal value of the shares based on the global offer share price.

    According to the plan, the legal and beneficial ownership of the shares will vest in the non-executive directors from the subscription date, with a restriction on the sale of the shares, such that the directors cannot sell or encumber any of the shares until the first anniversary of the global offer at which point they may sell up to 50 per cent of the scheme shares while any of the remaining 50 per cent cannot be sold until after the second anniversary of the global offer.

    “It is the intention of Seplat to issue the LTIP shares at nominal cost to the company as part of the agreed employee incentive scheme in consideration of their services to the company over a period of time. The company will pay the cost of the shares at nominal price from its profit and allotment will be made from the company’s authorised share capital and will not be bought on the floor of the NSE,” according to the document notifying of the intention of the oil company to issue and list the shares.

    The shares would be issued from the unissued shares of Seplat at nominal price and allotted to the employees and trustees at nominal price too.

    A source in the know said that Seplat has already informed authorities at the Nigerian Stock Exchange (NSE) of its intention to issue and list the shares. Seplat currently has 553.31 million ordinary shares listed on the NSE with a market value of N185.94 billion at the opening of the market yesterday.

    Seplat had explained that the LTIP was approved and disclosed in the prospectus that was issued in April 2014 and the revision was made to the earlier approval in June 2014. The company stated that at its annual general meeting held in June 2014, shareholders approved the LTIP for the company’s staff.

    According to the company, the LTIP is intended to increase the employee productivity, morale and loyalty by focusing their performance more on long-term goals by tying employee performance to rewards.

    After a highly successful global IPO of $500 million, Seplat had made history mid April 2014 as the first upstream company to be listed on the NSE. It also simultaneously listed its shares on the London Stock Exchange (LSE). The initial offer size of the IPO was expected to raise gross proceeds of approximately $500 million, equivalent to £300.9 million and N82.5 billion. It was however oversubscribed. It subsequently increased its capital base by about N5.78 billion with the absorption of the oversubscription from the IPO by adding 10.03 million ordinary shares of 50 kobo each to its shares. The company attributed the additional shares to oversubscription and allotment that resulted from the IPO.

    Seplat was founded in 2009 by Shebah Petroleum Development Company Limited and Platform Petroleum (Joint Ventures) Limited for the purpose of investing in Nigerian oil and gas opportunities. Maurel& Prom, a French independent oil company, subsequently acquired a 45 per cent equity interest in SEPLAT; this interest was later spun-off to form Maurel & Prom Nigeria S.A, which is now known as Maurel & Prom International.

    In July 2010, SEPLAT acquired a 45 per cent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil mining leases-OMLs 4, 38 and 41, which are located in the Niger Delta. In June 2013, the company entered into an agreement for the acquisition of a 40 per cent participating interest in the Umuseti/Igbuku marginal field area located within OPL 283 in the Niger Delta.

  • Fanfare as directors, associates honour Fashola

    Fanfare as directors, associates honour Fashola

    For his unassailable achievements as governor of Lagos State in the last eight years, Mr Babatunde Fashola (SAN) sure deserves all the encomiums being poured on him by those who know him. And expectedly, the governor was celebrated in a book written by about 30 notable people who have one story or the other to tell about him. The book, entitled, ‘The Example: The Era of Babatunde Fashola as Governor of Lagos State’, was launched at an event orgarnised by the Institute of Directors Nigeria (IoD), on Wednesday at Shell Hall in MUSON Center, Onikan, Lagos.

    It was all about a man who approached governance with energy and imagination and came out as the gold standard for governance and a governor of example. His colleagues came to see and learn; they freely gave their accolades. For them, Fashola became the governor of example.

    On Wednesday, friends and associates gathered for the launch of the book, edited by the Chairman, Editorial Board of The Nation, Sam Omatseye, and reviewed by a member of the Editorial Board of The Nation, Olakunle Abimbola. The forward was written by Prof Itse Sagay (SAN).

    Among the contributors to the book are former governor of Ekiti State, Kayode Fayemi; Lagos State Commissioner for the Environment, Tunji Bello; a personal assistant to Governor Fashola, Oluwaseun Faleye and several others.

    The book tells Fashola’s story from the inside, by lieutenants who saw him work; think in the posh office and in the rain-drenched trenches. It is also written by some on the outside who looked in and they present a barometer of the unbiased onlooker. It is a rounded view of his stewardship.

    The book launch was part of the activities during the public policy lecture of the Institute of Directors Nigeria (IoD). The theme was: “My stewardship – Eight years of delivering excellence”, with Governor Fashola as the Guest Speaker.

    For the main event, the Shell Hall, MUSON Centre, Onikan, Lagos, had a formal setting, decorated in black and white colours. Most of the guests were corporately dressed, while others wore native attire.

    Comedian, Gbenga Adeyinka, enlivened the gathering with jokes.

    The Chairman of IoD programme committee, Mr Yomi Jones, welcomed the guests, while the Vice Chairman, IoD, Mr Kelechi Ozuzu, read the citation of Governor Fashola.

    In his speech, Fashola thanked the Chief Host, President / Chairman of the Institute, Chief Mrs Eniola Fadayomi, for the platform and described Omatseye as his friend and a respected columnist.

    According to Omatseye, the editing of the book demanded a lot of pressure, but it was also an intellectual fulfillment.

    “Trying to get everybody to write, pursuing them, shaping the idea of what they are supposed to write, eventually editing the book, the production and getting it printed was such an interesting and fulfilling exercise; I am very grateful to God that this day has come,” Omatseye said.

    The reviewer, Abimbola, said the book is a glorious showcase of the wonders Fashola has wrought in his eight-year governorship, heading to a glorious finishing on May 28.

    “The tale, a relay of 36 contributors, is told mainly by participant-observers, cabinet members past and present. The only exceptions are John Kayode Fayemi, a gubernatorial peer and former governor of Ekiti; Leo Stan Ekeh, Chairman, Zinox Group; Aderemi Makanjuola, CEO Caverton Helicopters; Marvel Akpoyibo, former Lagos State Police Commissioner; Walter Olatunde, project director of Deux Projects Ltd; Aminu Yaro Idris, Sarkin Hausawa of Lagos State; Prof Adewale Oke, CMD, LASUTH and Mark Eddo, the maker of a triad of documentaries on the renascent Lagos of Asiwaju Tinubu-Babatunde Fashola era, and proud Eko citizen.”

    Mrs Fadayomi said as Fashola’s achievements are being celebrated, we must not forget that preservation of worthy deeds are best captured in the quality of the projects executed as well as documented records of how it was done.

    She commended Omatseye for undertaking the task of documenting these milestones in the book.

    She said the IoD Nigerian public policy lecture is a platform designed to showcase the pride and satisfaction in adhering to good governance and give the governed the opportunity to access the quantitative and qualitative impact of the policies of government and key governmental agencies.

  • Vitafoam’s directors meet on dividend payment

    Directors of Vitafoam Nigeria Plc are scheduled to meet next week to consider the financial and operational reports of the foam-manufacturing company. The meeting is expected to consider the appropriate dividend to be recommended for payment to shareholders.

    At the meeting, the board will consider and approve the audited financial statements of the company for the year ended September 30, 2014. While the details of the earnings are still not available, there are strong indications that the company will sustain its unbroken dividend payment record.

    The meeting will also consider the date, time and venue for the annual general meeting as well as closure and payment dates for the dividend recommendation.

    Vitafoam Nigeria has almost predictable pattern. It has been holding its annual general meeting around Ikeja, within the vicinity of its head office. It has also retained its dividend payment rate, in spite of stunted earnings.

    For the past four consecutive years, the company has distributed annually N246 million as cash dividends to shareholders. Usually, shareholders would receive a dividend per share of 30 kobo for the business year.

    Audited report and accounts of Vitafoam Nigeria for the year ended September 30, 2013 had indicated that sales rose by 12.8 per cent but pre and post tax profits dropped by 22.5 per cent and 18.2 per cent respectively. The largest growth on the profit and loss accounts remains finance expenses, which rose by about 40 per cent. With basic earnings per share dropping from 61 kobo to 50 kobo, the retention of the 30 kobo dividend payout cut dividend cover from 2.03 times to 1.67 times. This downtrend is also evident in the underlying returns and profitability of the company.

    Group’s total sales closed 2013 at N16.34 billion compared with N14.48 billion recorded in 2012. Cost of sales however rose by 16.4 per cent from N9.34 billion to N10.87 billion. Gross profit thus inched up by 6.3 per cent from N5.14 billion to N5.47 billion. Total operating expenses rose by 9.8 per cent to N4.34 billion as against N3.95 billion in previous year. Distribution cost had increased from N945.19 million in 2012 to N955.83 million in 2013 while administrative expenses rose from N3.0 billion to N3.38 billion. Non-core business income increased by 13 per cent from N146 million to N165 million. However, finance expenses jumped by 39.7 per cent to N661 million as against N473 million in previous year. With these, profit before tax dropped by 22.5 per cent from N813 million to N630 million. After taxes, net profit dropped by 18.2 per cent to N410 million in 2013 compared with N502 million in 2012.

    Underlying ratios showed similar outlook. Gross profit margin dropped to 33.5 per cent as against 35.5 per cent in 2012. Profit before tax margin also dipped to 3.9 per cent compared with 5.6 per cent in previous year. Average return on total assets declined from 7.9 per cent to 6.3 per cent while average return on equity dropped from 17.2 per cent to 13.2 per cent.

     

     

  • Nasarawa varsity gets DVCs, directors

    The Vice-Chancellor of the Nasarawa State University, Keffi (NSUK), Prof Muhammad Mainoma, has appointed two Deputy Vice-Chancellors (DVCs) and five directors.

    At a Senate meeting, the VC announced the appointment of Prof Yakubu Ngwai, who was the Dean of the Faculty of Natural and Applied Sciences, as DVC on Administration and Dr Sa’adatu Liman, who was the Head of the Department of Islamic Religious Studies, DVC Academics.

    Prof Mainoma also approved the establishment of two new institutes and three directorates for the university. They are Institute of Governance and Development Studies, to be headed by Prof Sani Abdullahi, Institute of Education to be headed by Prof James Otuka, who is a past DVC on Academics.

    Prof Olayemi Akinwumi of the Department of History was appointed as the Director of Directorate of Research and Publications, while Dr Suleiman Nchi of the Faculty of Law is the Director of Quality Assurances and Advancement.

    Prof Fati Shuaibu of the Department of Educational Foundations was appointed as the head of the Directorate of Guidance and Counseling.

  • Bank directors’ forum coming

    Bank directors’ forum coming

    The annual stakeholders’ forum of the Bank Directors Association of Nigeria (BDAN) for the year will be holding in Lagos on November 18.

    The forum brings together executive and non-executive directors of banks, officials of other financial institutions, regulatory authorities, professional bodies and executives of other leading companies in Nigeria.

    In a statement, the organisers said the forum is an opportunity for banking professionals to   share thoughts on the theme: “Competing Globally from the Boardroom: Reviewing Benchmarks for Nigerian Bank Directors”.

    It said that among other things, this year’s forum is aimed at enlightening directors on the need for banks and companies in the 21st century to have a board that understands the implications of, and need for global competition.

    The event will be chaired by Chairman, Standard Chartered Bank Nigeria Limited, Sir Remi Omotoso and will be attended by Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele who will deliver the keynote address. The guest speaker is Mr. Ayodele Othihiwa, Partner and Head, Financial Services, KPMG, a distinguished professional with broad experience of the Corporate and Board level issues in the financial services sector.

    The target audience for this year’s forum includes: Chairmen, Executives, Non-Executive Directors, Managing Directors of Banks & other financial institutions, professional bodies, Investment Advisers, Consultants, Officials of Chambers of Commerce & Industry, and officials of regulatory authorities.

  • Varsity fetes past INHURD directors

    The Vice-Chancellor, Federal University of Agriculture, Abeokuta (FUNAAB), Prof Olusola Oyewole, has commended the immense contributions of the past and present leadership of the Institute of Human Resource Development (INHURD), for the enormous success recorded by the institute.

    Speaking at a party held in honour of the past directors and staff members of the institute, Oyewole noted that the development of INHURD was as a result of the vision, hard work and dedication of its founding fathers and members of staff.

    He praised his predecessors for their role in the growth of the institute which was conceived by the pioneer Vice-Chancellor, Prof ‘Nimbe Adedipe. Those who came after, Prof Julius Okojie, Prof Israel Adu, Prof Ishola Adamson, and Prof Olaiya Balogun built on the vision and expanded it until the centre metamorphosed into an Institute and re-located to its permanent site

    The Vice-Chancellor said that very soon, there would be computerized identity card for members of staff and students, which would last for one year.

    Speaking of future plans, the Director of INHURD, Prof Francis Sowemimo said the Institute would soon start international programmes such as TOEFL and SAT in addition to the IJMB A-Level it currently runs.

    Sowemimo, however, appealed to the Vice-Chancellor to assist in building more lecture theatres repair the main road leading to the Institute.

    Past Directors, honoured at the appreciation party are: Prof Segun Lagoke, pioneer director (2002 – 2006), Prof Babatunde Oguntona (2006 – 2007), Dr Taofiq Salisu (2007 – 2011) and Prof Babatunde Kehinde (2011- 2013).

     

     

  • Shareholders to deduct infraction costs from directors’ fees

    Shareholders would seek to deduct infraction costs from the fees payable to directors of their companies where such infractions border on clearly outlined rules and regulations.

    Founding member, Nigeria Shareholders Solidarity Association, Alhaji Gbadebo Olatokunbo, who spoke to The Nation, said they would start to consider carefully the reasons for infractions and the costs related to such infractions at the annual general meeting, decrying what they described as needless infractions.

    He spoke against the background of report by the Central Bank of Nigeria (CBN) that banks were violating credit reporting rules and the decision of the apex bank to meet any further violations after the reminder and warning with severe sanctions.

    He said shareholders would hold the directors to account for any violation, especially where it was discovered that existing rules were explicit.

    According to him, the board and management are appointed by the shareholders to ensure that their companies are run under best practices and in compliance with rules.

    He pointed out that since the shareholders have the statutory mandate to fix directors’ fees at the annual general meeting, shareholders would use their votes to reduce the fees payable to directors in proportion to the infractions during the year under consideration.

    He said shareholders were aware that regulators usually issue warnings to companies before applying sanctions on subsequent defaults.

    The CBN had last week warned banks against violation of the Credit Risk Management System (CRMS), which requires all banks to report credit facilities availed to their board members and staff in the CRMS.

    The CRMS, a central database for credit information on borrowers established by the CBN Act No. 24 of 1991 (Sections 28 and 52) as amended, makes it mandatory for all banks to render returns to it in respect of all credit facilities of N1 million and above.

    The apex bank said credit facilities availed to board members and staff of banks are not exempted from the CRMS noting that the provisions of Sections 3.4 and 3.5 of the Prudential Guideline for Deposit Money Banks in Nigeria, July 2010 does not preclude banks from reporting credit facilities availed to its board members and staff in the CRMS.

    In the circular signed by Director, Banking Supervision, Central Bank of Nigeria (CBN), Mrs Tokunbo Martis, the apex banks stated that banks are required to report all credit facilities including principal and interest of N1million and above granted to their board members and staff in the CRMS as well as regularly update these credit facilities monthly.

    The apex bank stated that it henceforth, any observed breach will attract severe sanctions.

     

  • CAC to stop ‘baby’ directors

    CAC to stop ‘baby’ directors

    The Corporate Affairs Commission (CAC) has said that it wouldno longer tolerate the use of infants as members of Board of Directors of companies. The commission also said it would ensure that unfit companies or fraudulent people are not registered.

    Its Chairman, Board of Director, Otunba Funso Lawal said the agency is aware that some companies are fond of placing an infant on the Board. He said such plan will not be accepted.

    It was at a stakeholders’ meeting in Lagos.

    Lawal said:“We plan to stop the usage of infant as part of Board of Directors of a company. We want ensure transparency and openness. In order word, anybody that want to register must submit two current passports and other documents.

    “We are also aware that some unscrupulous people want to register a company so as to be able to perpetrate their evil plan.

    The agency will no longer tolerate or accept such companies. There is an on-going plan to ensure that such company is detected and decline from getting registered,” he said.

    On the Small Scale Business, he said: “We have observed that 90 per cent of the business done in the informal sector can be found in both Kano and Lagos and have decided to approach a means of bring them into the formal sector.

    On the 24 hour business registration, he said the policy has been a success , adding that the agency will ensure its sustainability.

    “For CAC, the 24 business registration is real. The issuance of names duplication has been reduced to the barest minimal. He said the agency had put strategies in place to safeguard all customers’ documents and information. He said: “In order to ease post incorporation activities, safeguard the records and ensure the integrity of all information in the commission, rapid document imaging has been embarked upon through the conversion of our manual records to suitable electronic formats.

    “On completion, records of all companies, business names and incorporated trustees will be available electronically and manual searches will be abolished. Customers will be able to access these records from the comfort of their offices and homes and pay the search fees, using electronic payment system.”

     

  • INEC prepares for 2015 with 18 directors

    INEC prepares for 2015 with 18 directors

    With the appointment of 18 directors, the Independent National Electoral Commission (INEC) is getting set for the 2015 elections.

    The newly appointed directors are Ngaladar Shettima( Borno)-Security Directorate; Arabambi A.D.(Osun)-Voter Education, Public Relations and Gender; Mrs. S.G. Ibrahim (Gombe)-Finance and Account; F.E. Tobi (Delta)-Audit; Moses Udoh (Akwa Ibom)-Estate, Works and Transport; U.F. Usman (Kebbi)-Administration; Isa Lawal (Plateau)-Procurement; Ismaila Mayi Kaura (Zamfara) – Stores Directorate; and Bala Shittu (Kaduna)-Election and Party Monitoring.

    Others are: Chidi Nwafor( Anambra) – ICT; Okey Ndeche Okechukwu (Anambra) – Planning and Monitoring; Akem Emmanuel (Benue) – Voter Registry; Irene Ngozi Oghuma(Delta)-Alternative Dispute Resolution (ADR); Isiaku A. Gali (Yobe) – Commission’s Secretariat; Oladimeji Kayode O.(Lagos) -Electoral Operations; Ogakwu C. Augusta (Anambra) – Legal Services; Osaze O. Uzzi(Edo) – (International Cooperation and Protocol) and Musa Hamidu Adamu(Bauchi) HRM Directorate.

    The appointments were based on merit and the federal character principle to reduce geopolitical and ethnic politics, which could distract the commission from conducting free and fair elections, it was learnt.

    Also, some directors, who were involved in past controversial polls in some states in 2007 have been redeployed.

    INEC Chairman Attahiru Jega decided to reshuffle the 67 directors he inherited from his predecessors to conduct credible elections in 2015.

    It was gathered that after a comprehensive professional auditing by Jega and all the National Commissioners, 18 of the 67 directors were found fit for the vision of the new INEC administration.

    The other 39 directors will be administrative secretaries in all the 36 states and the FCT or at the Electoral Institute of the commission.

    A source close to the reorganisation said: “The restructuring was borne out of the need to make the commission more effective to be able to deliver free, fair and credible elections.

    “If you remember, the INEC chairman has always said the vision of this leadership is to make the commission the best electoral management body in Africa. This is part of the measures being put in place achieving that.”

    Responding to a question, the source added: “There is spread, everybody is taken care of.

    “The exercise is based strictly on merit while also bing mindful of the Federal Character Principle. It has been carried out for the commission to be neatly streamlined. No more overlap of functions, no more duplication.”