Shareholders Raise Concern over Negligence of Minority Investors in Capital Market

Shareholders under the aegis of the Proactive Shareholders ’Association of Nigeria (PROSAN) has raised concerns over the negligence of minority shareholders in the Nigerian capital market, and it is ready to take the bull by the horn and address it at the 2023 investors summit taking place in Ibadan, Oyo state.

They stated this at a press conference to announce the 2023 investors summit is themed: “valuable shareholders.”

The summit is expected to have major capital market regulating bodies, listed companies, registrars and stockbrokers to address over 1500 shareholders on the high ethical standard of shareholders in the Nigerian capital market.

Speaking the National Co-ordinator, the Proactive Shareholders ’ Association of Nigeria (PROSAN), Mr. Oderinde Taiwo noted that the minority shareholders are being ignored by core investors, companies, and regulating bodies when the need arises.

According to him, “The theme was considered based on the ways we (shareholders) comport ourselves at the Annual General Meeting (AGM) venues, among other places we meet these companies, core-investors.

“If a shareholder is about to be appointed to a board of a company, this company will beckon on shareholders to comport themselves. Mind you, these shareholders are people who have reached an apex in the core area of their profession.

“Minority shareholders are agile, and professional people in the capital market with many severing in the board of some listed companies. These sets of people do not fight at AGM for food and souvenirs.” 

He added, “Let’s blame Corporate Affairs Commission (CAC) for registering some of these shareholders associations.  However, there is a need for CAC to talk to the prompter of such an association and find out if he/she knows anything about the capital market.

“We need to blame regulators for some of these unethical behaviour of shareholders in the capital market.  So, when the Securities and Exchange Commission (SEC) directed shareholders association to register, they are expecting processualism and certain standards.”

He disclosed that some companies and activist shareholders are going to be awarded at the summit, tagging the award as corporate transformation agents.

According to him, “These companies have empowered Nigerians through their investments. They have turnaround so many sectors.”