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NSE fines six companies N6.4m for illegal publication

By BusinessNews Staff on October 21, 2013

The Nigerian Stock Exchange has imposed a fine of N6.4m on six quoted companies for various publications without necessary approvals.

The fines were imposed on the companies for failing to obtain prior written approval from the Exchange before the publications.

The information, obtained by our correspondent from the X Complaince report posted on the NSE website, showed that Julius Berger Nigeria Plc had the highest fine of N1.47m.

The company, according to the NSE, was fined for the non-disclosure of the substantial shareholding of Oasis Petroleum Company Limited in its 2011 Annual Reports and Account.

Oasis Petroleum Company Limited holds 9.8 per cent of Julius Berger shares.

Honeywell Flour Mills Plc was fined N1.26m for the unauthorised publication of its Extraordinary General Meeting notice, while Sterling Bank Plc was fined N1.32m for the non-disclosure of its bond issuance to the Exchange, and N675,000 for non-compliance with the NSE directives.

The report also noted that Custodian and Allied Insurance Plc as well as Crusader Insurance Plc were sanctioned to the tune of N661,000 and N472,500, respectively for the publication of their notices of court-ordered meeting(s) without the NSE’s approval, while Wapic Insurance Plc was fined N496,125 for the publication of the appointment of its directors.

The NSE said, “Quoted companies are required to obtain prior written approval from the Exchange before publication that affect shareholders’ interest are made in the media. In addition, companies are also required to disclose material information to the Exchange and publish some of that information in their annual reports.

“The companies mentioned above breached these provisions of the listing rules and were sanctioned accordingly.”

Last year, the NSE declared MTI Plc, Deap Capital Management and Trust Plc and 12 other listed companies as financially insolvent following their inability to submit their financial results at the due time.

The affected companies, according to the Exchange, failed to submit their financial statements for the 2011 financial year despite reminders sent to them.

It noted that Deap Capital, for instance, which had its financial year end in September 2011, failed to submit its results to the Exchange to date, while MTI, with its December 2011 year end, also defaulted in submitting its results.

Other companies that fell into the category included Hallmark Paper Products Plc, Aluminium Manufacturing of Nigeria Plc, Union Dicon Salt Plc, West African Aluminium Products Plc and Nigerian Wire Industries Plc.

It added that other companies identified as financially insolvent and undergoing restructuring were: Golden Guinea Breweries Plc, Rak Unity Petroleum Plc, Udeofson Garment Factory Plc, Abplast Products Plc, Jos International Breweries Plc, Nigerian Sewing Machine Company Plc, and Stokvis Nigeria Plc, Union Ventures and Petroleum Plc.

[Punch]

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