Fourteen insurance companies were responsible for 50.4 per cent of the total penalties meted out by the Nigerian Stock Exchange, amounting to N339.5 million for offenses that included default in timely release of operational reports and financial statements covering the 2017 to 2018 interim report.
The NSE recently announced sanctions totalling N673,000,000 for 28 companies for failing to meet post-listing requirements
The other 14 companies accounted for the balance of N333.5 million.
The list of offenders released by the exchange included three commercial banks, one microfinance bank, three mortgage bankers, 14 insurance companies, one investment management firm and five other firms in various non-financial sectors.
Universal Insurance Plc accounted for a total of N70.9 million for defaulting on four different reports within the period under review.
Thomas Wyatt Nigeria Plc, the pioneer manufacturer of school and office stationery and large-scale printers came second with a penalty of N46,800,000 for its failure to file the audited account of 2015.
African Alliance Insurance is on the third position with N46,100,000; Standard Alliance Insurance came fourth with a penalty of N36.9 million; Great Nigeria Insurance, fifth with N35.1 million; Academy Press Plc sixth, with N35million; Niger insurance, N30.1 million; Cornerstone, N27.3 million; and Conoil Plc, N24.9 million.
The defaulting firms include: Unity Bank Plc, Skye Bank Plc, Fidelity Bank Plc, Fortis Microfinance Bank Plc, Staco Insurance Plc, African Alliance Insurance Plc, Goldlink Insurance Plc, UNIC Insurance Plc, International Energy Insurance, Aso Savings & Loans Plc, Resort Savings & Loans, Union Homes Savings & Loans Plc, Deap Capital Management & Trust Plc, R.T Briscoe Plc and Smart Products Nigeria Plc.
Others include Afromedia Plc, Roads Nigeria Plc, Nigerian German Chemical Plc, Thomas Wyatt Nigeria Plc, Golden Guinea Breweries Plc, Anino International Plc, Juli Plc, Ekocorp Plc, Union Dicon Salt Plc, FTN Cocoa Processors Plc, Evans Medical Plc, Omatek Ventures Plc and Dn Tyre & Rubber Plc.
According to the NSE, the companies failed to submit their interim reports and accounts for the period ended June 30, 2018. Such default is marked out by the exchange as a corporate governance failure, which attracts monetary fines, “naming and shaming” tag, suspension of shares from trading and delisting in incurable cases of default.
The exchange further noted that 20 of the firms missed the regulatory deadline of July 30, while Fidelity Bank, which audits its half-year results, missed the August 29 deadline.
Under the listing rules, a late submission attracts a fine of N100,000 daily for the first 90 calendar days of non-compliance; another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of submission.
With these, late submission under the first instance of 90 days could attract N9 million, the additional 90 days will attract N18 million while such delay beyond the first 180 days to the next 180 days could attract as much as N72 million, bringing fines payable by a defaulting company within a year to N99 million.
The list of sanctions showed fines ranging from N0.1 million to as high as N51.4 million. Companies had been fined more than N400 million and N500 million in 2016 and 2017 respectively for failure to submit accounts within scheduled periods.
There are 15 companies currently under suspension for failure to meet scheduled submission of financial statements. Forty-one monetary fines have so far been placed on companies in 2018, while more than 38 monetary fines were slammed on companies in 2017.
Dear Esteemed reader,
As part of our drive to keep improving the content of our newspaper, we are conducting a readership survey to enable us serve you better.
Kindly take two minutes of your time to fill in this questionnaire.
Thank you for your time. Click here to begin