Nigeria: Seplat Energy Terminates Avuru’s Appointment as Non-Executive Director

The Board of Seplat Energy on Thursday announced that it has terminated the appointment of Austin Avuru as a Non-Executive Director of the company, due to alleged breaches of the company’s corporate governance policies and his fiduciary duties.

Seplat Energy’s Director, External Affairs & Sustainability, Chioma Nwachuku, who made the announcement in a statement posted on the Nigerian Exchange (NGX) website, stated that the termination became effective from December 22, 2021.

But in reaction, Avuru Thursday stated that the intention of the announcement of the termination of his appointment was to do incalculable damage to his hard-earned reputation.

The letter by Seplat was titled: ‘Change on the Board of Seplat Energy and signed by its Director, Legal/Company Secretary, Edith Onwuchekwa.

It stated: “The Board of Seplat Energy announces that it terminated the contract of appointment of Mr. Austin Avuru as a Non-Executive Director on 22nd December 2021, due to breaches of the Company’s corporate governance policies and his fiduciary duties. The Board has called for his resignation as a Director of Seplat Energy.

“In line with Seplat Energy’s Memorandum and Articles of Association, Platform Petroleum Limited has been asked to nominate a candidate for his replacement on the Board, and a further announcement will be made in due course.”
Speaking further, Avuru, in his letter titled: “Re: Change on the Board of Seplat Energy Plc. – Mr. Austin Avuru,” said the intention of the company clearly to do incalculable damage to his hard-earned reputation.

A letter signed by his legal team which included Osaro Eghobamien and Folabi Kuti, both Senior Advocates of Nigeria from the firm of Perchstone and Graeys, also stated: “Our attention has been drawn to a publication issued by Seplat Energy Plc. (Seplat Energy/ the company) on December 23, 2021, clearly designed to malign Mr. Austin Avuru (our client), and we’ll circulated on both the mainstream and social media.”

It added: “Our client had taken a dignified position on the issues leading to the ill-advised action. This is clearly evidenced by Seplat Energy’s letter dated January 9, 2021 confirming our client’s dignified position, and urging our client to act with confidentiality, which is customary to our client’s impeccable character.
“In a dramatic summersault and by letter dated December 22, 2021, received by our client at about 6pm, Seplat Energy purports to terminate the appointment of our client from the Board.

“This was followed by a public announcement the next morning without as much even giving our client the opportunity to respond to a letter, content of which were otherwise grossly mischievous. We will immediately respond to the fictitious allegations, and reserve our client’s rights.

“The general public is hereby advised to discountenance Seplat Energy’s publication of December 23, 2021.
Avuru became the pioneer chief executive officer and co-founder of the company in 2010 and in July 2020, he retired as the CEO, but remained on the board of the company as a Non-executive Director.

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