SHAREHOLDERS have called on PZ Cussons Nigeria Plc to be transparent and accountable in its operations.
They made the call at the 76th Annual General Meeting (AGM) of the company held on Thursday, November 28.
The shareholders highlighted ongoing concerns regarding director remuneration and the sale of the company’s assets.
PZ Cussons Nigeria had in a statement on November 1, proposed to increase its director’s remuneration to N326.59 million for the financial year ending May 31, 2025, besides sitting allowance.
The demand raised concerns among shareholders associations who felt that the company should not have made such a request at a time when it is financially unhealthy.
At the meeting on Thursday, it was, however, explained that the external auditor had combined the remuneration of the non-executive directors with that of executive directors, which was considered abnormal.
The combination led to an increase in reported remuneration the company’s earlier fixed at N326.59 million.
“It was resolved that the external auditor should separate these figures for proper accountability and analysis,” the national president of New Dimension Shareholders, Patrick Ajudua, told The ICIR.
On the issue of the sale of assets, there was a consensus that selling off the company’s assets was a negative indicator of business health.
It was advised that the management halt the sale of the company’s assets and instead focus on enhancing internal revenue generation to support business growth.
“The meeting reflected strong majority support among shareholders for the resolutions passed but highlighted ongoing concerns regarding transparency and accountability in director remuneration.
“The emphasis on halting asset sales indicates a strategic shift towards strengthening the company’s operational capabilities rather than liquidating assets, which could be a positive sign for future growth,” Ajudua added.
All resolutions tabled during the meeting were passed, indicating a majority support among shareholders.
The resolutions include election/re-election of directors, fixing of external auditors’ fees, directors’ remuneration, audit committee election, general business mandate, and remuneration of managers.
However, no resolution was reached on the company’s offer to shareholders for the planned delisting from the Nigerian stock market.
PZ Cussons (Holdings) Limited, the parent company of PZ Cussons Nigeria and majority shareholder of the company, had in September 2023 revealed plans to delist from the Nigerian stock market and proposed an initial N21 per share offer to the minority shareholders to be implemented under an arrangement.
However, the offer was subsequently rejected by the minority shareholders who insisted on a N40 per share payout after the regulator, the Securities and Exchange Commission (SEC), rejected the PZ board’s application for delisting, following shareholders’ refusal to accept the N23 offered.