Shareholders at an event
Leave a comment
Chuks Udo Okonta
Investors under the umbrella of Independent Shareholders Association of Nigeria (ISAN) are pushing for the payment of fine imposed on insurance companies by the managements and boards of errant firms.
The Coordinator of ISAN, Sir Sunny Nwosu, who disclosed this in an interview, said allowing companies management and board pay for fine, would help reduce infractions and keep executives on their toes.
He expressed misgivings on how shareholders are allowed to suffer for crimes they no nothing of, stressing that the huge amounts paid as fine would have accrued to shareholders as dividends.
“Penalties do not give any value to top executives, it is shareholders money that is thrown away, and that was why ISAN has spearheaded a situation to say that if any company is penalized, the management and board should be held responsible to reform the money,” he said.
He noted that the idea was muted to check the care free attitude of some management and board, stressing that making the parties responsible for the penalties would make them play with caution and protect shareholders’ investments.
Recall that the National Insurance Commission (NAICOM) and shareholders have recently, engaged in war of words over fine and penalties paid by underwriting firms. While the regulator accused shareholders of been used as stooge by firms to cover financial mis-management, shareholders alleged that the commission is profiting from sanctions and penalties imposed on firms, whilst denying investors return on their investments.