In preparation for its imminent demutualisation, the Nigerian Stock Exchange (NSE) inaugurated its Claims Review Panel (the Panel) on 21 December 2020, pursuant to the provisions of the Demutualisation of The Nigerian Stock Exchange Act 2018 (the “Act”).
The Panel serves as an independent alternative dispute resolution mechanism for the review and determination of Claims made by individuals or entities in respect of any assertion of rights in the shares of the demutualised Exchange i.e. Nigerian Exchange Group Plc (HoldCo).
The Panel will sit in an appellate capacity and review Claims from Claimants’ who are dissatisfied with any decision of the National Council of The Exchange on a Claim pre-demutualisation, or the Board of Directors of the HoldCo , post demutualisation of The Exchange.
As part of the demutualisation process, The Exchange (which is currently a company limited by guarantee) would be converted into and re-registered as a public company limited by shares. Consequently, current Members of The Exchange will be allocated shares in the HoldCo.
The securities exchange license of the current Exchange would be transferred to Nigerian Exchange Limited, a wholly owned subsidiary of the HoldCo, which would carry on the securities exchange business. Another wholly owned subsidiary, NGX Regulation Limited, would be licensed by the Securities and Exchange Commission (SEC), to carry out regulatory services.
To safeguard the independence of the Panel, and following a diligent search for distinguished individuals with the required expertise and extensive track records of integrity, excellence and achievements in their respective fields of specialisation, The Exchange is pleased to announce the appointment of the following members of the Panel:
- Mr. George Etomi (Chairman)
- Mr. Seni Adio, SAN
- Mr. Abatcha Bulama
- Dr. Paul Anababa, SAN
- Prince Aghatise Erediauwa
At the Panel’s inauguration on 21 December 2020, Otunba Abimbola Ogunbanjo, President, The Nigerian Stock Exchange, said he “expected members of the Panel to discharge their responsibilities without any fear or favour in an objective and dispassionate manner, being guided by principles of fair hearing, equity and natural justice”.
He expressed optimism that the Panel would diligently carry out its functions and responsibilities under the Act and that each member would bring to bear their respective experience and expertise to enrich deliberations and decisions.
The Panel will be established pursuant to the Demutualisation of The Nigerian Stock Exchange Act 2018 (the Act). The Act provides that a claim may be asserted within the period commencing from the coming into force of the Act and six years after the demutualisation of The Exchange.
Following a notification of the of decision the Council or Board on whether the Claimant has any right to the shares claimed, the Claimant must notify the Council or Board of the intention to challenge the findings of the Council or the Board before the Panel within fourteen days.
Upon receipt of the Claimant’s notice of the intention to appeal, the Council or Board shall, within fourteen days convene the Panel and provide the Chairman and each member of the Panel with all documents considered by the Council or Board in making its finding on the assertion of the Claimant.