Dipo Olowookere
By Dipo Olowookere
A legal action has been instituted against the co-founder of Seplat Energy Plc, Mr A.B.C. Orjiako, by the indigenous energy company at the Federal High Court in Abuja over breaches of an agreement between them.
A statement issued by Seplat disclosed that the organisation entered into a consultancy deal with Mr Orjiako, through his firm, Amaze Limited.
According to the disclosure, which was made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange Limited, 2015, also known as issuer’s rule, Mr Orjiako failed to do something about the alleged breaches after his attention was called to infractions.
As a result, Seplat Energy terminated the “consultancy agreement between the company’s wholly-owned subsidiary and its co-founder, Dr. A.B.C Orjiako, acting through Amaze Limited” with immediate effect and is seeking “appropriate legal remedies.”
“Under the consultancy agreement, Dr Orjiako was obliged to provide defined assistance with certain external stakeholder engagements following his retirement from the board after the 2022 Annual General Meeting in May 2022,” a part of the notice stated.
It was further noted that the board of directors of the organisation “unanimously approved” the termination of the contract “following repeated warnings about breaches of a material nature, such as unilaterally making significant commitments on Seplat’s letterhead without prior board authority or knowledge.”
It explained that the suit “was necessary to protect the company and its shareholders, directors, and officers from potential and increasing liability arising from the conduct of the consultants, Dr Orjiako and Amaze Limited.
“Seplat Energy reiterates its commitment to high standards of corporate governance across all areas of its business. The matter is now sub judice and awaiting resolution by the court,” the statement noted.
