The Nigerian Stock Exchange (NSE) has announced plans to
sanction 28 companies for failing to meet post-listing requirements. This
include defaults ment for timely release of operational reports and financial
statements.
The list of offenders released by the exchange include three
commercial banks, a microfinance bank, three mortgage bankers, five insurance
companies, one investment management firm and 15 other firms in various
non-financial sectors.
According to the NSE, the companies failed to submit their
interim report and accounts for the period ended June 30, 2018. Such default is
marked out by the Exchange as a corporate governance failure, which attracts
monetary fines, “naming and shaming” tag, suspension of shares from trading and
delisting in incurable cases of default.
It further noted that twenty of the firms missed the
regulatory deadline of July 30, while Fidelity Bank, which audits its half-year
results, missed the August 29 deadline.
Under the listing rules, a late submission attracts a fine
of N100,000 daily for the first 90 calendar days of non-compliance, another
N200,000 per day for the next 90 calendar days and a fine of N400,000 per day
thereafter until the date of submission.
With these, late submission under the first instance of 90
days could attract N9 million, the additional 90 days will attract N18 million
while such delay beyond the first 180 days to the next 180 days could attract
as much as N72 million, bringing fines payable by a defaulting company within a
year to N99 million.
The list of sanctions shows fines ranging from a low of N0.1
million to as high as N51.4 million. Companies had been fined more than N400
million and N500 million in 2016 and 2017 respectively for failure to submit
accounts within scheduled periods.
The defaulting firms
include:
Unity Bank Plc
Skye Bank Plc
Fidelity Bank Plc
Fortis Microfinance Bank Plc
Staco Insurance Plc
African Alliance Insurance Plc
Goldlink Insurance Plc
UNIC Insurance Plc
International Energy Insurance
Aso Savings & Loans Plc
Resort Savings & Loans
Union Homes Savings & Loans Plc
Deap Capital Management & Trust Plc.
R.T Briscoe Plc,
Smart Products Nigeria Plc
Afromedia Plc,
Roads Nigeria Plc
Nigerian German Chemical Plc,
Thomas Wyatt Nigeria Plc
Golden Guinea Breweries Plc
Anino International Plc
Juli Plc,
Ekocorp Plc
Union Dicon Salt Plc
FTN Cocoa Processors Plc
Evans Medical Plc
Omatek Ventures Plc
Dn Tyre & Rubber Plc.
There are 15 companies currently under suspension for
failure to meet scheduled submission of financial statements. Forty one
monetary fines have so far been placed on companies in 2018, more than 38
monetary fines slammed on companies in 2017.
