Says the four founding members do not hold enough shares to be in the board
Newswatch Communications Limited has announced the sacking of Ray Ekpu, Dan Agbese, Yakubu Mohammed and Soji Akinrinade from the Board of Directors of the company.
A statement by the company said their removal from the board is sequel to the Share Purchase Agreement (SPA) signed by them, which required them to have “appropriate shares” to be on the board of the company.
Section 7.0 of the said SPA states: “Both parties agree that the founding members of the company retiring could take up appointments as consulting editors, up to a period of two years; or membership of the board, where appropriate?.
According to billionaire businessman, Jimoh Ibrahim, who recently acquired majority stake in the company, the collective shares of the four founding members is 6.1 per cent of the total shares.
“They are knowledgeable and old enough to know the implication of the documents they signed and as such cannot eat their cake and have it,” said Ibrahim; adding that by law, only a shareholder holding a minimum of 10 per cent stake can legally demand for a board seat in any company.
He advised them to approach the company to buy more of the unalloted shares in order to retain board seats. “Having voluntarily retired from the company, and having their benefits paid,” he said.
The four founding members had protested the suspension of the publication, accusing Ibrahim of going against the agreement reached before the sale.
The new owner, however, insists that a suspension of the publication and a total restructuring of the company is the only way to get it out of the woods.