By UCHE USIM, Abuja

The Securities and Exchange Commission (SEC) on Monday warned Nigerians about the nefarious activities of some individuals who created and circulated text, audio and video messages on social media to the effect that the commission carried out a recruitment exercise where 811 persons were employed, all from Anambra State with one from Kano State.

The messages parade the person shown in the video as Ms Mary Uduk, the Acting Director-General of the Commission.

The commission, in a statement, described the materials as total falsehood, clarifying that the person shown in the video was not the acting director-general of SEC and that no such recruitment exercise was conducted.

“For the avoidance of any doubt, since the acting DG assumed office, the commission has not carried out any recruitment exercise. The public is therefore advised to disregard the messages and video being circulated as they are false”, the statement added.

In another development, SEC clarified its position on the sharing of gifts at Annual General Meetings as contained in Rule 602 (4) of its rules and regulations.

According to the SEC, “Rule 602(4) states that ‘’public companies shall not distribute gifts to shareholders, observers and any other person at Annual General Meetings/Extra-Ordinary General meetings’’

“The commission considers it necessary to clarify that ‘’light refreshment’’ are not construed as ‘’gifts.’’

The SEC had last year amended its rules and regulations to stop listed companies from distributing gift items at AGMs.

Justifying the rule, the commission said public companies spend a significant amount of money on corporate gift items at AGMs/EGMs which has a great impact on their profitability.

“Few of the companies are making reasonable profits and even fewer can afford to pay dividends. If the amount budgeted for the gifts at AGMs/EGMs can be reserved for other relevant operational or administrative expenses, it would positively impact on their earnings per share,” it explained. (Daily Sun)

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