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NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years - Career - Nairaland

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NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by froz(m): 12:56pm On Aug 17, 2017
The Nigerian telecom regulator, Nigerian Communications Commission (NCC) has begun a regime of checks on operators in the telecom sector to ensure strict compliance of best practices through a Code of Corporate Governance which became active in November 2016.

This is one of the measures by the commission to engender consumer satisfaction, industry resilience, accountability and sustainability of businesses in the sector which now contributes a huge chunk to the nation’s GDP.

As part of the new push, NCC has sent out a team of chartered accountants to check the financial status of telcos as well as their technical well-being including network integrity. Using four key performance indicators (KPIs), the commission said it was all in line with the dictates of the new Code made public Tuesday to stakeholders.

After the financial meltdown which hit Etisalat (now 9Mobile) in which syndicated loans from a  consortium were not serviced as at when due, the commission said it would be indirectly minding how funds are managed by the operators especially since some of the funds were funds from the subscribers through recharge.

Principle 11.9 of the Code states: “To ensure continuity and injection of fresh ideas, a Director may serve on a Board for a period of three3) terms of five(5) years each. No Director shall on any Board for a period exceeding a total number of 15 years.

“Subject to satisfactory performance and the provisions of CAMA, all Directors shall be submitted for re-election at regular intervals of five years. In order to guide decision of shareholders, names and sufficient biographical details of Directors nominated shall be accompanied by performance evaluation statement and any other relevant information”.

The Executive Vice Chairman of the NCC, Professor Umar Danbatta, said the Code was not to stifle innovation and growth among operators but to ensure sustainability and conformity to best practices by operators. He explained that the regulator was not interested in sanctions but that sanctions only apply as a last option when other advisory roles of the commission were not adhered to by any operator.

“We want to ensure that things are done the right way; that the books are transparent and that new ideas are injected by new and younger Board members at all times to complement the experience of the older Board members”, Professor Danbatta said.

The Nigerian telecom sector has attracted foreign direct investment in excess of $68 billion since 2001 and participants at the workshop in Lagos said there was the need to protect such investments and even grow it through adherence to global best practices.


SOURCE: https://brandspurng.com/aftermath-of-etisalat-fiasco-ncc-begins-financial-checks-of-telcos-directors-to-serve-only-15-years/
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by Nobody: 6:35am On Aug 18, 2017
How many years were they serving before now?
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by Mullah13(m): 7:17am On Aug 18, 2017
ok
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by RingimKabir(m): 7:17am On Aug 18, 2017
I want to work with NCC please!
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by Desdola(m): 7:19am On Aug 18, 2017
Nice one
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by carpmam: 7:19am On Aug 18, 2017
S
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by TundeHashim(m): 7:21am On Aug 18, 2017
What bout if I'm the majority share holder in a public company...are u telling me i cant use more than 15 years in my owmln company?
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by OlujobaSamuel: 7:27am On Aug 18, 2017
15years? isnt 10enough?
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by mastermaestro(m): 7:40am On Aug 18, 2017
TundeHashim:
What bout if I'm the majority share holder in a public company...are u telling me i cant use more than 15 years in my owmln company?

I will simply move out with my share of the company. Nigerian regulators are dumb!

1 Like

Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by senier007(m): 7:52am On Aug 18, 2017
Don't know whether this is a good development or another method by the government to muscle away the right of individuals owners of the telecoms to oversee his own investment as a director, what happen after 15years? Will the shareholder becoming automatically non-director shareholder or that's how far he can go? If a director spent 15years with Etisalat, and later left the company and join MTN is he also eligible to spent another 15years with them or not?
Well we will wait and see how the thing plays out
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by alex81(m): 8:00am On Aug 18, 2017
what's the significance of this new directive when there are important aspects of the sector yet to addressed.

2 Likes

Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by OmoManU: 8:05am On Aug 18, 2017
mastermaestro:


I will simply move out with my share of the company. Nigerian regulators are dumb!

Abi, e for be for a lifetime na
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by sdavirus: 8:14am On Aug 18, 2017
But senators can stay in the house for 20years. Idiots...big ones
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by salesforce: 9:02am On Aug 18, 2017
Ok
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by burqueenx(f): 10:05am On Aug 18, 2017
cool
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by burqueenx(f): 10:08am On Aug 18, 2017
tripleY:
How many years were they serving before now?
......Life grin

Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by ivolt: 10:19am On Aug 18, 2017
mastermaestro:


I will simply move out with my share of the company. Nigerian regulators are dumb!

Move it to where exactly ?
Don't call regulators dumb because you can't understand the regulation.
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by ivolt: 10:20am On Aug 18, 2017
TundeHashim:
What bout if I'm the majority share holder in a public company...are u telling me i cant use more than 15 years in my owmln company?

Any public company is not your company.
The mentality of running a kiosk where the owner
is a god does not extend to such companies.
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by mastermaestro(m): 11:15am On Aug 18, 2017
ivolt:


Move it to where exactly ?
Don't call regulators dumb because you can't understand the regulation.

Go found a company first before I can have a serious conversation with you.
Re: NCC Begins Financial Checks Of Telcos; Directors To Serve Only 15 Years by TundeHashim(m): 2:04pm On Aug 18, 2017
ivolt:


Any public company is not your company.
The mentality of running a kiosk where the owner
is a god does not extend to such companies.
obviously I know. It's all bout legal personality and salomon v Salomon case. I'm just trying to figure out a scenario where an individual owns 90% of the shares and 99% voting rights and still us the MD imof the company...I don't think it's fair for the law to Be in omnibus..

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