34 Firms Fined N59m For Late Submission Of Financial Statement

The Nigerian Stock Exchange (NSE) has fined 34 companies about N59.4 million for filing their financial statements after the regulatory due date.
The Exchange explained in the latest edition of its ‘X-Compliance Report’ released on October 26, 2015 that it applied sanctions in accordance with the provisions of Section 14 of Appendix 111 of its listing rules.
Information obtained from the report showed that Oando having the heaviest fine of N6.2 million for its financial year end 2014, first and second quarter 2015. Daar Communication followed with N6 million fine for not releasing its December 2013 result on time, while Conoil Arbico and Multiverse were fined N1.8 million each. Vitafoam was fined N1.4 million.
Thirteen insurance firms to pay N26.5 million fine for default-filing of their financial statements, representing about 44.6 per cent of the total fines, as the industry is known for untimely submission of results.
Aso Saving was fined N3.7 million for financial year ended, December 2013, Nigerian Enamelware with a fine of N1.6 million for 2013 financial year end. C&I Leasing to pay N1.3 for late filing of its financial statements for the year ended December 2014. Also, RT Briscoe was asked to pay N1.5 million, NASCON, and Union Diagnosis were fined N100, 000 each. While Omoluabi Savings was fined N1.6 for late submission of its December 2014 result.
The NSE and the Securities and Exchange Commission have adopted a zero tolerance stance with regard to violation of regulatory guidelines and market infractions.
As a result and in what they say is the desire to protect investors, ensure transparency and enshrine good governance in the market, sanctions have been imposed on market operators and quoted companies several times.
However, shareholders have asked the NSE to go beyond cash punishment as this is not having effect on the company since the company can pay, the reality was that the shareholders are the ones suffering the consequences of fines.
The president, Progressive Shareholders Association, Mr. Boniface Okezie, said that the cash punishment is not enough for the company, saying “I am not saying that people should not follow the rules, but when you are imposing penalties that will not have meaning to the shareholders, the end result is that it is the shareholders who will suffer the consequences. And when we ask questions about the penalties paid at annual general meetings, the companies will say they are imposed on them by the Stock Exchange.
“We want to see a situation where the Exchange will be very beneficial to the shareholders. It is not penalties that make the Exchange beneficial to the shareholders.”
He gave the assurance that shareholders on their part would continue to advise the companies and operators to abide by the rules of the Exchange to avoid paying such penalties.

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