Prudent Man Rule

Nigeria: The Man, Justice Ayo Isa Salami

Analysis

Justice Ayo Isa Salami was as usual quietly conducting his regular duties as an Appeal Court justice in December 2009 when Goodluck Jonathan, the acting president at that time, appointed him President of the Court of Appeal. Salami, a product of law from the Ahmadu Bello University (ABU), Zaria; was called to bar in 1968.

He has since worked quietly from one level to the next unheard of and unseen, except mainly in court chambers. He was the quintessential judge for whom the dictum, 'Judges should only speak in their judgments,' was a fitting tribute.

Then, he became head of the appellate court, gained national visibility instantly, and, unknown to him or anyone else, began a journey of prominence that would attract muck to his personality even as huge sections of the Nigerian people are up vowing for his innocence and condemning his perceived enemies.

Salami who hails from Ganmo, Kwara State, is described by many as a man of tremendous courage who delivers judgments regardless of who smiles or cries in the process.

JUSTICE SALAMI, A VERY PRUDENT PERSON -Ali (SAN)

A Senior Advocate of Nigeria (SAN), Olaolu Ali, is an Ilorin-based lawyer who has known Justice Ayo Salami for decades. Ali says Salami is a prudent person not given to lust after money and worldly gains.

Speaking last night to Sunday Trust, Ali said, "I happen to have known Justice Salami very well and can describe his private and professional life with confidence. Justice Salami is a no-nonsense jurist, a profoundly intelligent person. He is a very courageous person and on the bench, he is one of the brightest that Nigeria has ever produced. To appear before him, you must be prepared because he knows his onions. Back at home, he is an elderly and friendly person around here. He is very respectful too. He gives you your regards, young as you may be. He's an easygoing person; very, very easygoing.

The prudent man rule | Invest For Kids Conference

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Many of us have heard of the prudent man rule, but many people seem confused about what it means, and their applicability. This rule had actually originated from a judgment 1830 common law of the Commonwealth of Massachusetts. The case involved a controversial issue of funds from Harvard University, and the rule came to guidelines of common sense and fiduciary responsibility to administrators of certain types of funds, especially those invested in mutual funds, as in hisnon-profit fund. Basically, this guideline for investment funds as a prudent man would have called, both in terms of growth of capital preservation and prudent safety and protection. Because of this Directive certain types of investments for a long time to be inconsistent with this rule, and therefore suitable for use for certain types of situations.

While a person may be able to determine for his personal circumstances, could and should be a certain degree of risk,mirror, or even if you feel comfortable with it (after all, is at risk their own money), should fund administrators, as standard equipment, funds non-profit organization, public funds, etc., not that kind of risk. This has nothing to do in particular with the underlying company or the fund or how well they could play, but the degree of risk.

Following this reasoning, should companies with funds that should be avoided as directed prudent mancertain types of investments such as speculative actions, naked options, put options, hedge funds (because they are much less than the regulated mutual fund), a mutual fund that specializes in a sector or industry, aggressive funds, hedge funds , commodities, commodity futures or options, etc.

We have heard many reports from all persons and organizations who have been "cheated" by Bernard Madoff. While someone cheated in an illegal is terrible, if funds are not invested withprofits or not for profit organizations, Foundations and Trusts, or public funds, were invested with Madoff, it was not only shameful, but a clear cut violation of the philosophy and intent of the Prudent Man Rule. Even if the Madoff funds were not “scams,” they would have been considered a form of hedge fund, and certainly less regulated, and far riskier than should be considered prudent.

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