Financial statements: NSE fines four firms N127.2m

The Nigerian Stock Exchange has fined four companies a total of
N127.2m for failure to adhere to best corporate governance
practices and refusal to submit their accounts and operational
reports as and when due.

Recall on November 7, 2018 that the NSE had lifted the
suspension it had earlier placed on trading in the shares of
Ekocorp Plc, Academy Press Plc, Premier Paints Plc and Austin Laz &
Company Plc.

The latest X-Compliance data from the NSE revealed that the four
companies were suspended at different times in 2017 and failed to
right their wrongs, which led to the huge amount of accumulated
fines.

According to the data obtained from the Exchange, Ekocorp owes
N75.6m; Academy Press, N35m; Premier Paints, N11.2m, and Austin
Laz, N5.4m.

Premier Paints and Ekocorp were suspended on July 5, 2017;
Austin Laz was suspended on August 2, 2017, and Academy Press on
October 4, 2017.

According to the rules for filing of accounts and treatment of
default filing and the rulebook of the exchange (issuers’ rules),
if an issuer fails to file the relevant accounts by the expiration
of the cure period, the Exchange will send to the issuer a ‘second
filing deficiency notification’ within two business days after the
end of the cure period.

The rules added that trading in the issuer’s securities would be
suspended and the Securities and Exchange Commission and the market
would be notified within 24 hours of the suspension.