Four Companies Get Sanctioned By NGX Over Default Filings

 

Four Companies Get Sanctioned for N11.7million over the Failure to record their financial Statement.

This was made known that the companies Get sanctioned last year for their inability to meet the regulatory requirements.

The companies sanctioned are Ecobank Transnational Incorporated Plc, Notore Chemical Industries Plc, PZ Cussons Nigeria Plc, and others.

Each company was asked to pay their sum of fines, PZ pay 41 percent for the failure of the record financial statement, the two companies pay the same percentage of N3.2 million, while the last company pays N500,0000.

According to the market operator, they agreed that the sanction for non-compliance with the rules of listing on NGX is a welcome development, as it will lead to moa create-appropriate pricing securities. More quoted entities would be compelled to give information to the market on time. 

According to Mr . Mike Eze, he supported the action of NGX because it would go a long way to boost investor confidence in the market. 

He also made this known that investors needed to make informed decisions before choosing which stock to buy and this can only be achieved if there is adherence to good corporate governance by the quoted companies.

Sir. Sunny Nwosu, the founder of the Independent Shareholder Association of Nigeria (ISAN), also supported the exchange that the four companies need to be sanctioned and need the necessary things to meet up.  

“It is not a new thing and it does not come to us as a surprise. We have constantly written to the exchange and raised the issue at annual general meetings that there is a need to know the status of these companies to enable us to take investment position,” Sunny noted.

According to the President, of Progressive Shareholders Association, Mr. Boniface Okezie, in it statement said it will be better for Nigerians to have a few companies that are ready to play by the rules than to have all the companies in the world that are not ready to satisfy post-listing requirements.

Okezie also made this known that penalizing companies will give other companies securities to pricing on a time basis.

Alhaji Gbadebo Olatokunbo, A founding Nigeria Shareholder member, made this known “We must always abide by the rules, sanctions would make the companies sit up and post their results as and when due, thereby providing investors, analysts, and stockbrokers the platform to predict the real value of the companies”. 

“Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix 111 of the Listing Rules.

“Financial information which is periodic disclosure and on-going material events disclosure should be released to The Exchange promptly to enable it efficiently perform its function of maintaining an orderly market”.Exchange report.