Name – The name of the Association shall be “The Association of Stockbroking Houses of Nigeria(ASHON)”.
Long Title – A constitution to provide for the rules and regulations of the Association of Stockbroking Houses of Nigeria.
Preamble and Enactment
a. Whereas it is expedient and in the interest of the Capital Market in Nigeria for there to be established a voluntary self regulatory body for Stockbroking Houses.
b. There is hereby established a body to be known as “The Association of Stockbroking Houses of Nigeria” (hereinafter in this constitution referred to as “The Association”) which under that name shall be registered by the Trustees with the Corporate Affairs Commission in accordance with the Companies and Allied Matters Act, 1990.
In these presents, if not inconsistent with the subject matter or content, the words set forth in the column below shall be ascribed the meanings set opposite the said words respectively in the second column thereof.
The Constitution – This constitution as now formed or as from time to time altered or modified by Special Resolution.
SEC – The Securities and Exchange Commission The Securities and Exchange Commission
NSE – The Nigerian Stock Exchange
The Seal – The Common Seal of The Association
The Capital Market – To include the dealings in any type of Securities in Nigeria.
The Board of Trustees – The Board of Trustees of the Association or the Trustees present at a duly convened meeting of the trustees at which a quorum is present/formed.
The Board of Trustees of the Association or the Trustees present at a duly convened meeting of the trustees at which a quorum is present/formed.
Member – Any Stockbroking firm duly registered by the appropriate regulatory authority to act as a Stockbroking firm which has been admitted to membership of The Association.
a. The membership of The Association shall be open to all Stock broking firms licensed to operate as Stockbroking Houses in Nigeria by The Nigerian Stock Exchange and registered by Securities & Exchange Commission and/or other appropriate regulatory bodies.
b. There shall be a register of Members in which shall be recorded the names and addresses of Members of the Association.
- Each Member of the Association in good financial standing shall by instrument in writing signed on its behalf by duly authorized persons(not less than the position of a Director /Company Secretary or 2 (two ) Directors )and delivered to the Association, appoint one (1) person or alternate officer of such member to be the member’s representative to partake in the affairs of The Association and vote on its behalf and be voted for at general meetings of The Association or hold any other position in The Association subject to such restrictions (if any) expressly stated in writing in a letter or other instrument addressed to the Secretary of The Association by such Member provided however that:
- A Member shall vote and be voted for.
- A Member may from time to time in the manner aforesaid revoke any appointment made pursuant to regulation 6 (a) above and make a fresh appointment in similar manner.
- The representative of each Member shall be representative only of the Member by whom he is appointed and shall have no power to commit The Association to any legal obligations or liabilities whatsoever except as may be duly authorized by The Association.
The objectives for which The Association is established are:
a. To proffer sound professional and ethical standards for practitioners and advice on compliance with the set standards in conjunction with the regulatory bodies established by statute.
b. To promote free interplay of market forces.
c. To enable Members interact with one another on issues concerning the capital market in general and the Stockbroking Houses in particular.
d. To promote and protect the interest of Members of The Association in the exercise of their duties as Stock broking Houses.
e. To enable Members approach or collaborate with the Government, the SEC, the NSE, CIS and other regulatory bodies as a single body in order to facilitate the formulation of policies affecting the Capital Market and other related issues.
f. To encourage professional development of Stock broking House operators.
g. To advance the knowledge of its Members and their staff by organising lectures, seminars, workshops, retreats etc.
h. To provide avenue for free flow of information among Members and to encourage research on Capital market transactions/operations and related areas.
i. To promote professional integrity in stock broking and other securities activities.
j. To relate with other professional bodies with a view to building a viable Nigerian Financial Markets.