Conoil, AG Leventis, nine others risk suspension from the NSE over filing deficiency

The Nigerian Stock Exchange has listed eleven companies who are at the risk of being suspended from the floor of the exchange for missing the deadline to file their Audited Financial Statements (“AFS”) for 2016, that was due on Friday, 31 March 2017.

The NSE noted that “as the companies failed to file their AFS by the due date, the companies have violated Rule 1.1.4, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“the Rules”), which requires listed companies to file their AFS “with The Exchange not later than ninety (90) calendar days after the relevant year end.”

The affected companies are: A.G Leventis Nigeria Plc; African Alliance Insurance Plc; Austin Laz & Company Plc; Capital Hotel Plc, Conoil Plc; Niger Insurance Plc, Premier Paints Plc, Resort Savings & Loans Plc, Smart Products Nigeria Plc; Sovereign trust Insurance Plc and Union Diagnostic & Clinical Services Plc.

Newsverge gathered that Rule 1.1.4 requires that the AFS must be “published in at least two (2) national daily newspapers not later than twenty one (21) calendar days before the date of the Annual General Meeting, and posted on the company’s website, with the web address disclosed in the newspaper publications. An electronic copy of the publication shall be filed with The Exchange on the same day as the publication.”

The Exchange also said it has issued a First Deficiency Filing Notice (“FDFN”) to the companies to notify them of their infractions, and to grant them three (3) days to provide information on the violation to the public through the medium of a press release.

In addition, the regulators said appropriate Compliance Status Indicator (CSI) has been placed beside the names of the defaulting companies on The Exchange’s trading system and ticker tape.

However, the defaulting firms have been given a ninety-day cure period to comply, and file their AFS on or before 29 June, 2017 or get their securities suspended from the exchange.

“Investors are advised to trade with caution on the securities of these companies in light of the absence of up to date financial information on them.”