Business
Cappa, ALUMACO, Adswtich, others delisted from Stock Exchange
Authorities at the Nigerian Stock Exchange (NSE) on Wednesday delisted eight companies over what they described as persistent failures of the companies to meet best corporate governance practices as enshrined in the listing rules.
A report just obtained by Ripples Nigeria indicated that eight companies including IPWA Plc, G. Cappa Plc, West African Glass Industries Plc (WAGI), Investment & Allied Insurance Plc, ALUMACO Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc were delisted during today’s trading session, which ended by 2.30 pm.
The notification noted that the compulsory delisting was in line with Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015, Part II, Issuers’ Rules, which referenced the obligations of quoted companies in terms of regular periodic submission of performance and financial reports, corporate governance and accountability.
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The delisting of the companies, the report indicated, was approved by the Quotations Committee of the National Council of the NSE earlier in March 2016.
The delisting implies that the Exchange has concluded and complied with the regulatory requirements in the delisting process including issuance of necessary notices, forbearances, fair hearing and probation without any rectification from the affected company.
Under compulsory delisting, the authorities at the NSE will at a specified date, after completion of the delisting process and approvals, delist the shares of the affected company without any further recourse to the position of the board or shareholders of the affected company. The opposite is voluntary delisting, which is the deliberate withdrawal of the shares of a company from the Exchange by the board of directors, acting on the mandate of the statutory majority of the shareholders.
A source said the companies were delisted because of their inability to comply with the listing requirements of the Exchange, especially in the areas of timely and accurate rendition of operational and financial accounts and other corporate governance issues.
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