Wema Bank Plc has announced that its board of directors would meet on Tuesday, May 12, 2020, at 10 am to take decisions on the company’s unaudited Financial Statements for the period ended March 31, 2020, among other issues.
The company also announced that it would observe its closed period from April 24, 2020, to 24 hours after the release of the company’s 2019 Audited Financial Statements to the floor of the Nigerian Stock Exchange.
This was disclosed in a notification, which was sent to the Exchange. The announcement is in line with Rule 17.18 of Part 2 (Issuer’s Rules) of the NSE’s Rule Book (2015) which states that:
“The period of closure shall be effective from fifteen (15) days prior to the date of any meeting of the Board of Directors proposed to be held to consider any of the matters referred to above or the date of circulation of agenda papers pertaining to any of the matters referred to above, whichever is earlier, up to twenty-four hours after the price-sensitive information is submitted to the Exchange.
“The trading window shall thereafter be opened. Every issuer shall notify the Exchange in advance of the commencement of each closed period.”
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Why this matters: The closed period will allow the board to consider the company’s unaudited financial statements for the first quarter. Other company issues will also be discussed during the meeting.
What is a closed period? A closed period is a period before the release of a company’s result or financial statement, when those with sensitive information are not allowed to trade on the stock. These individuals may include company directors, audit committee members, persons discharging managerial responsibility, employees and consultants with sensitive information.