The Nigerian Bar Association (NBA) Lagos Branch on Tuesday held a seminar on major issues involved in equity offerings in Nigeria, at the Lagos City Hall.
The seminar was facilitated by the law firm of G Elias & Co which also sponsored the event. The seminar was however the initiative of the NBA Lagos Continuing Legal Education & Mentorship committee led by Mr Tobenna Erojikwe of The Law Crest.
Prof Gbolahan Elias SAN was joined by two other solicitors from his chambers, Nosakhare Aguebor and Ukamaka Okoli, in discussing the legal and regulatory framework around offering the shares of a Nigerian company for sale.
In his presentation, Prof Elias noted that most of the work lawyers do in relation to offers for subscription usually has to do with removing obstacles on the path to such offer. Challenges identified in this respect include contentious clauses in the company’s memorandum and articles of association, imperfect board and company resolutions, and pending litigation among others.
Nosa identified the various parties involved in the process of equity offerings to include mandatory parties such as capital market operators, issuing houses, receiving bank/agent, stockbrokers, registrars, rating agencies, reporting accountants and trustees while optional parties include underwriters, public relations agencies and tax consultants.
Ukamaka considered such issues as taxes, liabilities and disputes arising in the course of equity offerings, taking time to highlight the various statutory provisions applicable to such matters as insider trading and disputes between capital market operators and issuers.
In all, attendees at the seminar learnt about the various methods of offerings such as Sale, Subscription, Introduction, Tender, Options, Placing, Capitalisation, Rights Issue as well as all the attendant obligations of lawyers advising on the transactions.
At the end of the seminar, chairman of the CLE & Mentorship committee, Mr Erojikwe expressed his appreciation to the facilitators and to Mr Steve Arubike of G Elias & Co for his efforts at organising the event.
The NBA Lagos chairman, Mr Chukwuka Ikwuazom in his vote of thanks also thanked G Elias & Co for constantly supporting the Lagos branch. He further expressed the commitment of the branch to organising more impactful events.