NSE Fines Insurance Firm Over Rule Violation

The Nigerian Stock Exchange has fined NEM Insurance Plc the sum of N575,505.00 for contravening Section 19:8 of its Rulebook.
The section states in part, “Upon receiving the approval of The Exchange every Issuer shall immediately publish on its website the Notice of Meeting, circulars, annual reports, scheme document and other information memorandum that will be considered at the general meeting.”
The notice of the sanction was contained in a letter dated Wednesday, 24th October 2018 and signed by Godstime Iwenekhai, head, Listings Regulation Department, NSE. The fine represents 50% of NSE’s listing fee for the breach.
The sanctioning of the insurance company came after a major shareholder in the company Eaton Acquisitions Limited wrote to NSE through its solicitors Bernateva Partners, seeking the reversal of the decisions reached at the Annual General Meeting held in Ibadan, Oyo State in June 2018.
The Exchange also received complaints from five shareholders of NEM, including Premium Green Limited, Starvest Limited, Three Sea Investment Limited and Oluwaseyilola A. Ojo, claiming that NEM Insurance had failed to notify them of the AGM in accordance with section 217 (1) of the Companies and Allied Matters Act (CAMA), SEC clause 24 and NSE rule 19.3, which prescribed at least 21 days’ notice to shareholders of an AGM to be held.
The shareholders also asked NSE to reverse the special resolution proposed and passed at the AGM to raise additional capital through a private placement at a price below the market price of NEM Insurance stock.