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NSE Axes Omatek, 16 Others over Corporate Failures

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Nigerian Stock Exchange (NSE) has suspended trading on the shares of Omatek Ventures and 16 companies over their failures to uphold best corporate governance practices and submit their accounts and operational reports as required.

Mrs Florence Seriki, founder of Omatek Computer Ventures died in March this year.

The other suspended companies included African Alliance Insurance, Equity Assurance, Fortis Microfinance Bank, Guinea Insurance, Premier Paints, Resort Savings & Loans, Sovereign Trust Insurance, African Paints (Nigeria), Aso Savings & Loans, Ekocorp, Evans Medical, Goldlink Insurance, Great Nigeria Insurance, Union Dicon Salt and Union Homes Savings & Loans and Universal Insurance Company.

A circular obtained by The Nation indicated that the companies were suspended after they failed to file their accounts and operational reports as required by the listing rules at the Exchange.

The suspension will remain in place until the companies file the relevant accounts and reports.

With the suspension, investors will not be able to trade on the shares of the companies, thus denying them opportunities to raise funds through such investments in case of financial needs.

Authorities at the Exchange had earlier delisted eight companies over what they described as persistent failures of the companies to meet best corporate governance practices as enshrined in the listing rules.

The compulsory delisting was in line with Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015, Part II, Issuers’ Rules, which referenced the obligations of quoted companies in terms of regular periodic submission of performance and financial reports, corporate governance and accountability.

The delisting of the companies, was approved by the Quotations Committee of the National Council of the NSE earlier in March 2016.

The delisting implies that the Exchange has concluded and complied with the regulatory requirements in the delisting process including issuance of necessary notices, forbearances, fair hearing and probation without any rectification from the affected company.

Under compulsory delisting, the authorities at the NSE will at a specified date, after completion of the delisting process and approvals, delist the shares of the affected company without any further recourse to the position of the board or shareholders of the affected company. The opposite is voluntary delisting, which is the deliberate withdrawal of the shares of a company from the Exchange by the board of directors, acting on the mandate of the statutory majority of the shareholders.