Law Union & Rock Insurance Plc notified the Nigerian Stock Exchange, other stakeholders, and the investing public that its directors are scheduled to meet on Tuesday May 12, 2020, via videoconferencing.
During the meeting, the directors will (among other things) consider the company’s unaudited financial statements for the period ended March 31, 2020.
The board also announced that the company would observe its closed period starting from April 28 2020 until 24 hours after the audited financial statements is filed with the NSE.
According to a public disclosure that was made available by the company, this 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.”
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 of the Board of Directors.
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 in the company’s stock. These individuals may include company directors, audit committee members, persons discharging managerial responsibility, employees, and consultants with sensitive information.