SEC’s Regulatory Oversight on Public Companies: An Appraisal of Securities and Exchange Commission v. Big Treat Plc & ORS.
The Court of Appeal, Lagos Division, recently restated the powers of the Securities and Exchange Commission “SEC” to intervene in the management and control of Public Companies to protect the interest of investors and maintain a free, fair, efficient and transparent capital market. This was contained in the decision of the appellate Court in Securities and Exchange Commission v. Big Treat Plc & Ors. (2019) LPELR-46520(CA).
The 1st Respondent, (“The Company”), a Public Company registered with the Securities and Exchange Commission (“SEC”) filed returns to SEC as required under the extant laws and Rules. Following the analysis of the Audited Accounts of The Company, the SEC took immediate steps to intervene in the seemingly deplorable financial affairs of the Company and protect further depletion of their assets.