Lockdown: Shareholders’ association optimistic on capital market

Mr Eric Akinduro, the Chairman of Ibadan Zone Shareholders Association, has expressed optimism of a positive outcome for the capital market inspite of the lockdown due to the COVID-19.

In an interview with our reporter on Tuesday in Ibadan. Akinduro said there had been considerable activities in the capital market.

“The situation we find ourselves in is one which nobody envisaged and we don’t have an option than to cope with what is happening now particularly in the capital market.

“The capital market cannot be exempted from what is happening in the economy; though now the capital market is still very active but not as strongly as we expected as shareholders.

“If you look at the capital market, the activities within two to three days seem positive because we see appreciation of some stocks in spite of the lockdown.

“We only pray for the situation not to last long and with time we believe everything will be okay,” he said.

He, however, noted that some shareholders were not comfortable with the holding of Annual General Meeting (AGM) by proxy.

Akinduro said his association was not against AGM by proxy, which he described as “a child of circumstance.”

“I think as shareholders we need to support companies coming up with proxy AGM as whatever any shareholder wants to suggest or criticise with the companies can be done outside AGM.

“There is always room for you as a shareholder to pass your constructive criticism or suggestions to the board of the company either online or otherwise.

“So AGM floor is not mainly for shareholders to continue to criticise or make suggestions, it can be done when it is not AGM period.

“Especially for shareholders that reside outside Lagos, we do not really object to what the companies are doing because if we have any feedback we know the channel to the companies.

“To this end, we are not against companies holding AGM by proxy, let them just do what is right.

“So far they are doing what is right as the managers of our investments; so they should do the best to move the company and our investment forward,” Akinduro said.

Speaking on the issue of dividend payments, the chairman said that since there was lockdown everywhere, shareholders need something to cushion the effect of the current lockdown.

“So if our dividend is going to be paid during this lockdown, it is a welcome development to the shareholders.

It was reported that Ibadan Zone Shareholders’ Association has membership drawn from the six states of Ekiti, Kwara, Ogun, Ondo, Osun and Oyo.