Exchange may delist more moribund companies

[fadun]

More moribund companies will soon be delisted from the Nigerian Stock Exchange’s official list signals from the Exchange show.
It was gathered that the management of the stock exchange had written letters to companies perceived to be moribund to remind them of the Green Accord, which stipulated the post-listing requirement of the Nse.
By the requirement, all the companies quoted in the First-tier securities market are expected to submit their results every quarter to the Exchange’s management, while those in the emerging markets sector are to submit their results every six months.

Corporate Governance Ethics and the Companies and Allied Matters Act also require such companies to hold yearly general meetings to keep investors informed about the performance of the companies.
In a letter signed by the General Manager, NSE Market Operations, the regulator reminded the companies of the need to comply with the post-listing requirements of the stock exchange. One of the recipient companies confirmed the development to our correspondent on Friday, adding that it was an information that had made the affected companies to see the need to live up to their responsibilities, and fulfill their obligations to both the shareholders and the NSE.

Some of the moribund companies have not paid dividends since 1992 and have not submitted their results to the stock exchange, while some have 0.00 earnings per share and 0.00 per earnings ratio.

The exchange delisted nine companies recently for the same reason, but there are other companies that are still moribund on the official list.
For instance, in the emerging markets sector Afrik pharmaceuticals, Anino International Plc, Flexible Packaging Plc and among others are moribund.
Also Albarka Air Plc, Foremost Dairies Plc, Stockvis Plc and Nigerian Sewing Machine Manufacturing Company Plc, among others are moribund in the First-tier securities market.

When contacted to confirm the red alert given to companies by the NSE, The Assistant General Manager, Market Operations, Mr Sola Oni, an assistant general manager neither confirmed nor denied the letter.
When prompted further, he said ”delistment is the last option. The Exchange wants all quoted companies to operate optimally and meet the post-listing requirements.

”However, if the Exchange discovers that a company has consistently reneged in meeting the requirements, the Exchange will engage in dialogue with such company before the final decision is taken.
”The essence of the dialogue is to ascertain the position of the company and efforts by the company to remain a growing concern.
The Exchange‘s ultimate goal is to ensure investor‘s protection”.