SEC wants public companies to publish impact of COVID-19 on businesses

The Securities and Exchange Commission (SEC) has called on public companies to publish the impact of coronavirus on their business operations.

SEC in acircular dated March 31, and released in Abuja on Wednesday, advised the companies to publish the information on their websites and or other relevant media.

“All public companies are required to continue to make material disclosures to investors on the impact of COVID-19 pandemic on their business operations,” the commission stated.

According to SEC, they should also continue to disclose the trend and outlook of the company as well as updates on implementation of business continuity plans.

The commission said it would continue to engage and collaborate with all stakeholders to ensure that the capital market remained resilient, adding that the move was part of its business continuity process.

“In compliance with the Federal Government’s directives on the cessation of movement in Lagos, Ogun and the Federal Capital Territory, SEC has activated its business continuity process.

“In light of the global pandemic of the Corona Virus Disease (COVID-19), the commission wishes to provide additional guidance to the capital market as follows:

“Public companies who plan to conduct Annual General Meetings are required to ensure that the conduct of the meetings comply with the provisions of the Companies and Allied Matters Act, the Investments and Securities Act, the SEC Rules and Regulations, among others.

“Debt issuers are also expected to continue to engage trustees to ensure that relevant disclosures are provided,’’ the commission said.

The commission enjoined all Capital Market Operators (CMOs) to continue to monitor the real and potential risks COVID-19 might have had on their business operations and the discharge of services to investors and clients.

SEC called on all issuers and trustees who might require further guidance to contact it through the following email addresses: [email protected],[email protected], and [email protected].

“While we work to maintain market stability, we encourage everyone to continue to comply with all directives issued by the Federal Government and relevant agencies during this challenging period,” it added.