As a precondition for the revival of Nigerian Capital Market, Capital market operators and other stakeholders have made a call for amendment of some sections of the new Company and Allied Matters Act (CAMA).
This call was made in Lagos yesterday, during the first hybrid 2020 conference of the Chartered Institute of Stockbrokers, CIS with the theme: “Navigating through the Storms-Reenergizing the Economy Through the Capital Market.”
The new CAMA has been under attack by different stakeholders over some sections that are anti-investment and one of the most incisive discussion was the examination of the new CAMA by a key speaker, Co-founder, Banwo and Igodalo and Chairman, Sterling Bank, Mr. Asue Ighodalo.
Ighodalo made a critique of the new CAMA in his presentation on “Rebirth of CAMA: Implication for the Capital Ecosystem and explained that much as it contains many sections that would enhance the growth and development of the capital market, there was a need to review some new sections that could inhibit market growth.
For instance, Section 142 of the Act provides that a company shall not in any event allot newly issued shares unless they are offered in the first instance to all existing shareholders of the class being issued in proportion as nearly as may be to their existing holdings. Since applicability of this provision does not distinguish private and public companies, implementation of the provision will pose significant problems for public companies seeking to raise capital by the issuance of new shares.
The President, CIS, Mr. Olatunde Amolegbe, explained in his welcome address that finding solutions to Nigeria’s economic problems was at the heart of this year’s conference objective. He noted that Nigerian stockbrokers had skills and competencies that positioned them to assist the government in providing solution to funding infrastructure deficit.
“I should at this juncture inform the general public that the scope of stockbroking, or the skill content of Chartered stockbrokers goes far beyond the traditional and popular securities trading activity typically associated with them. Stockbrokers are all round investment experts.” He said.
While addressing the participants, the Chairman, House Committee on Capital Market, Honourable Babangida Ibrahim explained that the conference would add value to the search for a fruitful and rewarding economic template that would bring about sustainable growth and development of Nigeria.
The Managing Director, NASD Plc, Mr. Bola Ajomale is another key speaker at the conference. He spoke extensively on “Alternative Investment: How to Invest When Traditional Options Taper” and listed the benefits and drawbacks of alternative investments.