NECA faults FRC’s policy on appointment of MD/CEO
The Nigeria Employers’ Consultative Association (NECA) has faulted the new Code of Corporate Governance of the Financial Reporting Council (FRCN) which prohibits the chief executive officer of an establishment from becoming the chairman until seven years on the position.
The provision called “Cool off period” has generated mixed feeling among stakeholders.
Speaking in Lagos, the Director General of NECA, Mr. Olusegun Oshinowo noted: “There is no justification for the restriction on MD/CEO becoming the chairman of the same company until after the cool off period of seven years as stated in Section 6 of the Code for Private Sector.”
According to him: “Some companies are formed by one or two shareholders with the vision of what they intend to achieve. What stops such investor that has served meritoriously as the MD/CEO from becoming the chairman upon retirement if so appointed by the board?”