The apex regulatory authority of the Nigerian capital market, the Securities and Exchange Commission (SEC), has ordered major marketing company, Forte Oil Plc, to issue bonus shares to its shareholders on or before the end of the first quarter of 2016.
The development which was confirmed in a statement by the company in Lagos, has precipitated or compelled the oil marketing major to issue its shareholders bonus shares, which the company had had proposed to issue since April 2015.
The company had announced a one for five bonus issue along with a N2.50 per share dividend for its year ended 2015.
It said it has not been able to issue the bonus issues due to what it claimed were reconciliation of its share register a requirement of the Corporate Affairs Commission, (CAC).
Shareholders have expressed dissatisfaction on the development, saying it was a breach of trust on the part of the company to have failed to issue members of the company their bonus shares as promised by the company at the last general meeting.
For instance, the Chairman of the Constant Shareholders Association of Nigeria, Mr Sheu Makhail said the company should comply to the order of the regulatory authority.
He wondered why the company has not fulfilled its promised since the last AGM, saying the only alternative is for the company to abide by the SEC’s order.
Another shareholder Mr. Gbadebo Olatokunboh said it is surprising to learn that the company could give the excuse of has been reconciling its share register for over 9nine months since it promised to issue the bonus shares, until SEC ordered it to act before the end of March to resolve all issues and pay its shareholders.
Forte Oil remains one of the top gainers of 2015 and has largely avoided the massive sell offs going on in the Nigerian Stock Exchange since crude oil went South.