Corporate Governance: Naicom to ban unapproved person in decision-making of companies

By Favour Nnabugwu

 

 

 

The National Insurance Commission, (NAICOM) has made it clear to insurance companies operating in the country that if by any means, companies incorporate a person not approved or known to the commission in decision making of a company will be ban from operating in insurance industry ever again

The Commissioner for Insurance, CFI who made this known at a seminar organised by Naicom for Insurance Correspondents in Lagos on the theme: “The Future of the Nigerian Insurance Sector in a Shifting Landscape,” said Naicom will not for whatever reason tolerate such in the insurance industry.

He said such actions is against corporate governance

Corporate Governance is a system specifying the division of duties, rights, and responsibilities among various participants in a corporation, such as the board of directors, the various committees within the board of directors, operating managers, and shareholders.

Anybody that is not known to the Commission and is participating in a critical role in any of the insurance companies will be banned from participating in the insurance sector henceforth. We will make sure that the person does not participate in the insurance business in this country anymore,” he stated.

We shall consciously pay due attention to issues of corporate governance practice in our industry. Enough of unguided practices by some unknown persons. Anybody not known to the Commission who is playing a strategic role in any insurance company will be dealt with. We will make sure that such persons does not participate in the insurance business in this country anymore. We shall not tolerate any form of abuse of corporate governance in insurance industry,”

The Commission said its current position is clear that where such influence exists, such person unapproved privilege positions to abuse corporate governance in companies .

CFI said if in the course of Inspection of companies, the Commission discovered a person not known to the regulatory body, is involved in critical decisions made by the company, will be banned from insurance industry in Nigeria.

The NAICOM boss said the Commission is encouraged to believe in a new dawn in all facets of regulatory policies, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand side of the economy.”

We shall consciously pay due attention to issues of corporate governance practice in our industry. Enough of unguided practices by some unknown persons. Anybody not known to the Commission who is playing a strategic role in any insurance company will be dealt with.

“We will make sure that such persons does not participate in the insurance business in this country anymore. We shall not tolerate any form of abuse of corporate governance in insurance industry,”

Thomas stressed that the Commission is engaging stakeholders including state governments towards ensuring the domestication of the laws to ensure compliance with compulsory insurances and improve the business of insurance in their respective states.