• Friday, March 29, 2024
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Companies sacrifice investors’ dividends for regulatory penalty

Companies sacrifice investors’ dividends for regulatory penalty

No fewer than 39 listed companies that filed their Audited and Interim Financial Statements after the regulatory due dates for years 2019 and 2020 paid the Nigerian Stock Exchange (NSE) penalties cumulatively valued at N345 million, X-Compliance Report at the bourse shows.

The X-Compliance Report is a transparency initiative of the NSE, which is designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

BusinessDay checks reveal that in 2020 penalty worth N211.3 million was paid by the default companies, while in 2019, they paid N133.7 million.

Financial information, which is periodic disclosure as well as ongoing material information disclosure, is expected to be released to The Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.

The companies, the financial statements filed after due date and the amount paid in 2020 as penalty are: Greif Nigeria Plc (Audited 2019, N500,000); Deap Capital Management & Trust Plc (Audited 2019, N3.8m); Thomas Wyatt Nigeria Plc (3rd Quarter 2019, N700,000); Ellah Lakes Plc (2nd Quarter 2020, N200,000); Deap Capital Management & Trust Plc (2nd Quarter 2020, N1.7m) and African Alliance Insurance Plc (Audited 2019, N3.2m).

Read Also: NSE to review 2020 market activities, provide 2021 outlook

Companies that are listed on the Exchange are required to adhere to high disclosure standards, which are prescribed in the Rulebook of The Exchange, 2015 (Issuers’ Rules), and other Rules of The Exchange, from time to time.

Also included in the list of defaulters penalised in 2020 are: Universal Insurance Plc (Audited 2019, N3.2m), Conoil Plc (2nd Quarter 2020, N400,000); African Alliance Insurance Plc (1st Quarter 2020 December N2.5m, 2nd Quarter 2020, N400,000), and Universal Insurance Plc (1st Quarter 2020, N3.2m, 2nd Quarter 2020, N400,000); LASACO Assurance Plc (Audited 2019, N4.4m; 1st Quarter 2020, N4.4m; 2nd Quarter 2020 , N1.7m); eTranzact International Plc (2nd Quarter 2020, N1.9m), and Royal Exchange Plc (Audited 2019, N5.4m; 1st Quarter 2020, N5.4m; 2nd Quarter 2020, N2.6m).

The NSE sanctioned the companies in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

The NSE’s long list of companies penalised for filing their financial statements after regulatory due dates includes: R.T. Briscoe (Nigeria) Plc (Audited 2019, N8.3m; 1st Quarter 2020, N8.5m; 2nd Quarter 2020, N5.3m), and Union Dicon Salt Plc (Audited 2019, N9.2m; 1st Quarter 2020 , N10.6m; 2nd Quarter 2020, N7.7m).

Other companies penalised in 2020 are: Interlinked Technologies Plc (Audited 2020, N100,000); PZ Cussons Nigeria Plc (Audited 2020, N400,000; 1st Quarter 2020, N300,000); FTN Cocoa Processors Plc (Audited 2019, N18m; 1st Quarter 2020, N20m; 2nd Quarter 2020, N11.8m; 3rd Quarter 2020, N500,000); Niger Insurance Plc (Audited 2019 , N22.2m; 1st Quarter 2020, N23.2m; 2nd Quarter 2020, N17.2m; 3rd Quarter 2020, N1.8m); Notore Chemicals Industries Plc (Audited 2020, N200,000); and Vitafoam Nigeria Plc (Audited 2020 , N200,000).

In 2019, Greif Nigeria was fined N800,000 for filing its audited 2018 financial statement after regulatory due date while Union Bank Nigeria was fined N200,000 for submitting its Audited 2018 financial statement after regulatory due date.

The list also shows: Afromedia Plc (Audited 2018, N400,000); Conoil Plc (Audited 2018, N400,000); Lasaco Assurance Plc (Audited 2018, N1.1m); Flour Mills of Nigeria Plc (Audited 2019, N1.2m); Lasaco Assurance Plc (1st Quarter 2019, N300,000); Universal Insurance Plc (Audited 2018, N3.6m; 1st Quarter 2019, N700,000; 2nd Quarter 2019, N700,000), and Thomas Wyatt Nigeria Plc (Audited 2019, N2.2m; 1st Quarter 2019, N500,000).

Others fined in same year are: Royal Exchange (Audited 2019, N5.9m; 1st Quarter 2019, N3m); Access Bank (2nd Quarter 2019, N700,000); R. T. Briscoe (Audited 2018, N7.5m; 1st Quarter 2019, N19m; 2nd Quarter 2019, N4.8m); and Guinea Insurance (Audited 2018, N8.2million; 1st Quarter 2019, N5.6m; 2nd Quarter 2019, N5.4m).

Niger Insurance paid NSE penalty of N8.6 million for submitting its Audited 2018 financial statement after due date. Also for 1st Quarter 2019, the insurer paid penalty of N5.7 million, and 2nd Quarter 2019 it paid N5.5 million.

Others are: Interlinked Technologies (Audited 2019, N200,000); Anino International (Audited 2015 -2018, N41.1m); Notore Chemicals Industries (Audited 2019, N200,000); and Vitafoam Nigeria (Audited 2019, N200,000).