Stories by Vivian Okejeme
Oando Plc has lost its move seeking to stop the Securities and Exchange Commission (SEC), from conducting a forensic audit on the company and also lift a technical suspension placed on its shares.
The ruling was consequent on a preliminary objection filed by Counsel to the SEC, George Uwechue, (SAN).
Ruling on the matter, Justice Mohammed Aikawa of a Federal High Court, Lagos, struck out the case on the grounds that the court lacked jurisdiction over the matter and advised Oando to take its case to the Investment and Securities Tribunal.
“I hold that the subject matter of this issue falls within the exclusive jurisdiction of the Investment and Securities Tribunal and not this court.
“In addressing this issue, I find the provisions of the Investment and Securities Act 2007 quite instructive. Section 284 of the ISA (2007) says the Tribunal shall, to the exclusion of any other court of law or body in Nigeria, exercise jurisdiction to hear and determine any question of law or dispute involving- (a) a decision or determination of the commission in the operation and application of this Act, and in particular, relating to any dispute- (i) between capital market operators; (ii) between capital market operators and their clients; (iii) between an investor and a securities exchange or capital trade point or clearing and settlement agency; (iv) between capital market operators and self regulatory organisation; (b) the Commission and self regulatory organisation; (c) a capital market operator and the commission; (d) an investor and the commission; (e) an issuer of securities and the commission; and Jurisdiction of the Tribunal, etc. 132 (f) disputes arising from the administration, management and operation of collective investment schemes.
“It is not in dispute that the matter before me is a dispute between capital market operators.”
The judge said, “The duty of the court is to apply the law. On this premise, I have no option than to uphold the preliminary objection. I also in the same vein uphold the preliminary objection of the 2nd defendant (Nigerian Stock Exchange). This court lacks the jurisdiction to adjudicate the dispute between both parties,” the judge ruled, adding that, “The proper place for this matter to go is the IST. I, therefore, strike out this matter.”
