Shareholders have called on regulators of the Nigerian capital market to institute policies that will make quoted companies more accountable and the market more attractive for local investors.
The shareholders under the aegis of Association of Avid Shareholders said that this was important as some investors who eloped the market in the wake of the meltdown in 2008 had not returned to the market.
A statement by the organisation on Tuesday, quoted its President, Mr. Abayomi Obabolujo, as saying this during the inauguration of the association on Saturday.
He decried the situation where some shareholders who lost huge funds in the market were not protected by the regulators, adding that if this had been done, the market would have recorded increased transactions.
He said, “The SEC and NSE are not doing enough to defend the rights of the shareholders. This association is formed on the basis that it is only the shareholders that can fight for their right. If you fight for your rights, nobody fights for you; and if you fail to fight for your right, nobody fights for you and things will just remain the same.
“Our target is to ensure that managers of quoted companies sit-up and do what they are expected to do. If you know you do not have what it takes to manage organisation to make profit within the capital market, why not resign or retire? We want to ensure that Nigerian investors do not put their money in the companies and keep on recording losses.”
While explaining the strategy to be adopted in running the affairs of the association, he disclosed that Avid was currently targeting at least 1,000 investors in Lagos and more from other regions across the country.
Abayomi who actively operated in the market for more than 20 years, said what informed the formation of the association was the way quoted companies were being managed.
He said, “How can somebody tell me that you are the manager of a quoted company for like six years, record loses year after year without keeping in mind the shareholders’ interest? But you keep getting your salary and other allowances, leaving shareholders stranded for years.
“Companies have been delivering poor results and nobody is blinking eyes with low or no dividend from good companies, high prices in some stocks.”