Specifically, any company that fails to pay dividend on due date shall attract a fine of five per cent of the total dividend amount declared. Similarly, failure by the company to issue bonus shares within three months after approval by shareholders at an annual general meeting (AGM) shall attract a fine of five per cent of the nominal value of the shares.
These and more are contained in the amended new rules of the NSE for listed of companies which have just been approved bythe
According to the rules, any late submission of accounts by companies will be fined N100,000 per week from the due date until the date of submission.
"A listed company that contravenes any of the provisions of the listing rules and general undertaking, and fails to pay the penalty imposed on it for such contravention on or before the due date shall be liable to a further fine of N300,000 in addition to N25,000 per day for the period the violation continues," NSE said.
The NSE said that companies shall be obliged to state in their annual reports contraventions and the sanctions imposed for such contraventions.
It added that its council reserves the right to remove the name of a company from the official list of the exchange at its absolute discretion and may, "if it considers there is insufficient public interest in the company, viz, insufficient shares in the hands of the public; or any of the foregoing rules are not complied with; or the company becomes a subsidiary of any other company."
Meanwhile, the bearish trend at the stock market continued yesterday with the NSE All-Share Index declining by 0.28 per cent to close lower at 42,664.98.
Market operators said the negative trading resulted from cautious stance of investors in
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