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Chuks Udo Okonta
Shareholders have threatened to commenced the recovery necessary fine by some insurance companies from their management team.
The Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) Sir. Sunny Nwosu, who said this at an Annual General Meeting (AGM) recently held by one of the insurance companies, implored underwriters to work assiduously to avoid paying careless fine.
According to him, owing to the harsh economic situation in the country, it would be inappropriate for companies to pay fines due to carelessness, stressing that it is worrisome that at a time where Shareholders are denied dividends, some companies pay huge sum of money as fine over things they have capacity to manage.
He noted that shareholders as owners of companies have rights to invoke the recovery of unnecessary fines from managements who failed to do what is expected.
Sir. Nwosu noted that regulators have in recent time demanded that shareholders take keen interest in the management of their funds without necessarily interfering with day-to-day management of the firms.
He maintained that shareholders would not fold their hands and allow few individuals mismanagement their hard earned funds, adding that shareholders invested in companies to earn return on investment and would not allow their funds be used to pay for individuals carelessness.
One of the insurance sector regulator had few years ago imposed $4 million on some insurance companies for non-compliance with operational rules and guidelines.
Speaking on the fine, the regulator said: “As regards breach of operational guidelines, there are some companies that will pay as much as over $4 million dollars in penalties. There are no kid gloves anywhere anymore. If you default, we will give you ample opportunity to come and defend yourself. We will open it up for discussion but eventually if you are found to have defaulted, you will have to pay a price because adequate warnings have been given.”
