The Nigerian Stock Exchange (NSE) has once again swung the big stick against 4 companies for flouting its rules on submission of results. An excerpt from its weekly report ended 6th October 20117, shows it has placed the shares of 4 companies on suspension. Suspension means the shares of the companies can not trade on the NSE. The companies include:
- Academy Press Plc
- Nigerian German Chemicals Plc
- Roads Nigeria Plc
- Thomas Wyatt Plc
Reason behind the suspension
According to the NSE, the companies were suspended for failing to submit their results on time, thus violating Rule 3.1 of the Stock Exchange’s Rulebook for issuers which relates to Rules for Filing of Accounts and Treatment of Default Filing.
The Exchange had in July this year suspended 17 companies for failing to submit their results. Listed companies are expected to file their results at most 90 days after the financial year or quarter has ended.
Implications of the suspension
Shareholders will be unable to buy or sell the shares of the affected companies. The companies most likely will have to pay fines for the late submission of results.
Academy Press Plc was incorporated in Nigeria as a private limited liability company on 28th July, 1964. By a special resolution, it became a public limited liability company on 22nd October, 1991. It offered its shares to the public in November, 1994 and these shares were listed on the Nigerian Stock Exchange on 15th June, 1995.
Nigerian-German Chemicals Plc (originally known as Hoechst Products Nigeria Limited) was incorporated on December 18, 1963. The company’s shares were quoted on the NSE in 1979, and is into the sales and manufacture of pharmaceutical healthcare products, household consumer products and oil-field chemicals.
Roads Nigeria Plc was incorporated on 11 October 1974, and listed on the NSE in 1979. The company’s principal activities are construction of roads, airfields, bridges and dams.
Thomas Wyatt Nigeria Plc formerly known as Thomas and Sons West Africa was incorporated on the18th of March 1948, and commenced business in 1949. It became a public company in 1978. The company is into manufacturing and marketing of school exercise books, hard cover notes, writing pads, drawing books, envelopes, duplicating and photocopying papers, reporters note books, files, toilet and facial papers.