Corporate Governance Worsens as Companies Withhold Financial Results

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•Sanction rises 243% to N730m in 2021

Shareholders call for name & shame

There are indications that more companies are now failing to comply with the post-listing requirements of the Nigerian Exchange Limited (NGX) with regards to rendition of periodic financial reports and accounts in apparent disregard of corporate governance practice.

Financial Vanguard  findings in the compliance status of the quoted companies as at end of November 2021  shows a significant increase in penalties as the total monetary fine imposed on the defaulters within the period stood at N730.53 million.

Specifically, the financial sanctions imposed on the companies rose to N730.53 million as at end November 2021, a 243.3 percent increase compared to N212.80 million in the whole of 2020.

Also the number of defaulting companies increased to 24 from 21 in 2020.

Periodic and timely rendition of financial results to the NGX, is one of the key elements in the post-listing requirements of the Exchange which failure attracts penalties.

According to the rule book of the NGX, “Companies listed on NGX are required to file their financial statements on a timely basis in accordance with the Rules for Filing of Accounts and Treatment of Default Filing.

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