Council received a report on the tripartite venture between the University, A.G. Leventis Group and a group of private investors comprising eminent Egba Sons in Ogun State.
Council noted the Share agreement of the venture.
Council also noted that in an earlier meeting in 2006, it also endorsed that the University assets (Land, Equipment and Machineries) at Kotopo and Ajura be its equity shares and the assets value were transferred to the company and the value sum credited in the University’s application for share accounts.
Council also noted that when the value of shares allotted to the University was deducted from the total value of asset transferred, the balance would be held as deposit for the University’s future allotment at an interest rate of 3% per annum.
Council noted that the University had been collecting monetary dividend for its shares as well as benefits in form of dividends and bonus shares from the operations of the Company, though limited.
Council noted that the declining fortune of the company in the past few years had been arrested and the performance of the company had once again returned to a profitable trend.
Council was informed of the plans of the company to expand its programme with the intention of establishing a Poultry Complex and Fishery which the Board and its Management believed would enable the company to consolidate the recovery and re-position it on profitability.
Council noted that the Company required more funds for both Working Capital and the acquisition of additional machinery to actualise this plan.
Council noted that the Federal Government land could not be used as collateral because of the implication of such action.
Council noted that the Company was requesting the University to kindly authorize the execution of the lease agreement between the University and the Company over the land and property at Kotopo and Ajura, which the University offered as consideration for its shareholding in the company, so that it could be used as collateral to collect a loan from a Commercial Bank to finance its expansion programme mentioned above.
Council considered and directed the University Management to seek for proper legal advice and guidance since the Federal Government of Nigeria had written that University land could not be used as collateral because of its legal implications.