The Nigerian Stock Exchange (NSE) has removed three firms from its corporate governance index. The bourse disclosed this in a notice posted on its website. The firms removed are Diamond Bank, NEM Insurance and Continental Reinsurance Plc. In addition, it stated why the companies were removed
The NSE CG Index tracks the performance of CGRS rated companies using their market capitalisation, free float and corporate governance rating scores. The Index is reviewed on a bi-annual basis at which point other companies that have become CGRS rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.
NEM Insurance was suspended from the NSE CG Index following the suspension of the CGRS rating of the company by the Steering Board of the CGRS on Monday, 19 November 2018.
The NSE had in October fined NEM Insurance Plc for contravening Rule 19.3 of its Rulebook. This pertains to complaints around its 48th Annual General Meeting.
Some shareholders had complained that the company failed to notify them of the AGM in accordance with section 217 (1) of the Companies and Allied Matters Act (CAMA), SEC clause 24 and NSE rule 19.3, which prescribed at least 21 days notice to shareholders of an AGM to be held.
The exchange, after its findings, slammed a fine of N575,505.00 on the insurance firm.
Diamond Bank, was removed from the index following what the NSE stated were governance issues.
Continental Reinsurance Plc was removed from the NSE CG Index following its application to delist from the Daily Official List of The Exchange.