IGI: Why AGM was delayed for two years
On April 26, 2012
BY NKIRUKA NNOROM

The Industrial and General Insurance Plc, IGI, has explained that the inability of the company to convene its Annual General Meeting, AGM, in the last two years was as a result of its failure to harmonise the individual accounts of its numerous subsidiaries across the continent during the period.

The Chairman, Gen. Yakubu Gowon, disclosed this while responding to questions in the company’s 19th AGM with shareholders in Lagos.

He said that the seeming difficulty of the subsidiaries to smoothly transmute to International Financial Reporting Standard, IFRS, during the period was the major setback.

According to him, it was pertinent that the financial statements of the subsidiaries- locally and internationally- be consolidated with that of the parent company to ensure harmony in its accounts presentation in the yearly meeting.

He said, “In view of the fact that some of the subsidiaries outside the country had issues with the adoption of International Financial Reporting Standard, IFRS, there was serious delay in the conclusion of their accounts and IGI could not conclude its consolidated accounted until all these financials were ready.”

He further stated that the company has not been able to bring the shares sold to the public in its last private placement three years ago to the stock exchange for listing due to the protracted downturn in the capital market, assuring that the management is planning to leverage the Over-the-Counter window to allow investors trade on the shares.

“The lingering unfavourable stock market situation in the previous years had underlined the prudence of the board’s decision to delay the listing for open trading. The company has evolved an arrangement to provide technical expertise and advice to shareholders who may wish to participate in the Nigerian Stock Exchange’s planned Over-the-Counter trading scheme for liquidity access as soon as that secondary market takes off fully,” he said.

He assured that the company was optimistic of bumper harvest in terms of dividend payment for shareholders in the near future having put cutting-edge market expansion and product innovations in place to take advantage of various macro-economic policies designed to broaden insurance penetration in the country.

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