Members of the Nigerian Stock Exchange on Tuesday passed requisite resolutions for the demutualisation of the exchange at a court ordered meeting and an extraordinary general meeting.
At the court ordered meeting, members voted and assented to the re-registration of the exchange as Nigerian Exchange Group Plc; the transfer of its securities exchange licence and other assets required to carry out the securities function to the Nigerian Exchange Limited. They also approved the establishment of a separate subsidiary company to be charged with the regulatory functions of the exchange’s post-demutualisation to be called the NGX Regulation Limited with total share capital of N1,250,000,000, comprising 2,500,000,000 ordinary shares of 50 kobo each to be registered with the Corporate Affairs Commission.
Other resolutions included the allotment of 1,964,115,918 ordinary shares to dealing members and ordinary members on the basis of a ratio of 78:22; the provision of claims review shares totalling 40,083,999 ordinary shares, representing two per cent of the issued shares of Nigerian Exchange Group, to be set aside for allotment to parties adjudged as being entitled to shares in the demutualised Exchange.
They also endorsed transfer of the assets of the NSE Consult Limited, NSE Nominees Limited and Coral Properties Limited – existing subsidiaries of the NSE – to the Nigerian Exchange Group Plc.
Following the COM, members reconvened for the EGM to determine the board of directors of the demutualised exchange, and explore the implementation of an employee share ownership plan.
Otunba Abimbola Ogunbanjo was named the chairman and non-executive director; Oscar Onyema emerged as the chief executive officer and managing director; Umaru Kwairanga, member and non-executive director; and Fatimah Bintah Bello-Ismail, member and non-executive director.
Oluwole Adeosun also emerged member and non-executive director; Chidi Agbapu, member and non-executive director; Patrick Ajayi, also member and non-executive director; Okechukwu Crescent Itanyi, member and independent non-executive director; and Nimi Akinkugbe, member and independent non-executive director.
Enase Okonedo was named member and Independent non-executive director; Ikpobe Apollos Oghooritsewarami, member and independent non-executive director and Ojinika Nkechinyelu Olaghere, member and independent non-executive director.
Speaking at the EGM, president of the national council, NSE, Ogunbanjo, said, “I feel elated that 19 years after initiating the process to demutualise and on the 60th anniversary of the Exchange, we are close to achieving the goal.
“The successful demutualisation of the Exchange was one of my main objectives when I assumed the presidency of the Exchange and I’m particularly happy it has been achieved during the lifetime of one of its founding fathers, Pa Akintola Williams.”