Members of the Nigerian Stock Exchange (NSE) have approved the long-awaited demutualisation programme of the nation’s bourse.
The Exchange announced the approval in a statement in Lagos on Thursday.
Demutualisation is a process whereby stock exchanges transform into Public Limited Liability Companies, and by implication, profit-making organisations listed on itself and any other exchange around the world.
The NSE stated that the approval was reached at the Extra-Ordinary General Meeting (EGM) of members on Thursday in Lagos.
It noted that members ratified and approved the engagement of financial advisers, legal advisers, tax advisers and other advisers that might be required for the demutualisation of the exchange.
The exchange added that the National Council and management of NSE were also authorised “to do all such things and exercise all such powers as may be necessary or incidental to achieving the objectives of the programme.”
The Exchange quoted Mr Aigboje Aig-Imoukhuede, NSE President, as saying that “the approval of the NSE demutualisation plan marks the achievement of an important milestone toward completion of the exercise.”
Aig-Imoukhuede said demutualisation of the exchange would put the Nigerian capital market at par with other international jurisdictions.
He added that it would enhance governance, transparency and visibility and attract strategic partners, investors and good quality issuers.
Members of the exchange at the NSE 55th Annual General Meeting (AGM) on June 23, 2016 suspended the special resolution to commence the process of the demutualisation programme.
Mr Emeka Madubuike, the immediate past President of Association of Stockbroking Houses of Nigeria (ASHON), said then that the resolution was suspended to give room for wider consultation between dealing members and the exchange. (NAN)