Help us to address infractions that threaten your investment – SEC to investors

The Securities and Exchange Commission (SEC) has charged shareholders of securities on the stock market to be vigilant in helping to address infractions that threaten their investments.

Failure to do so, Dr Jacob Aidoo, Head of Issuers Department, SEC, said was likely to result in shareholders losing their investments in the case of insolvency.

Citing the case of UT Bank, he said, the company’s net liability which was GH¢1.5 billion was more than its assets saying that, in such situations, payment to creditors, which is prioritised per the Insolvency Act, would lead to shareholders losing their investments.

He was speaking in Accra yesterday during the Annual General Meeting (AGM) of the Association of Shareholders on the Stock Market, Ghana.

“As it is now, unless the Liquidator identifies new assets of the bank, the shareholders of the bank cannot be paid their investments. All assets found currently will be used in offsetting debt to creditors,” MrAidoo stated.

The role of shareholders at AGMs, he said, was critical in making sure that the interests and investments of shareholders were protected.

He therefore urged the shareholders to report to the SEC any infractions uncovered in their engagements with managers of entities for immediate redress.

DrAidoo said “As shareholders, you should take active interest in the performance of your entity on the stock exchange. This will help to save your investments and the business as a whole.”

He asked the association to intensify education of members on dividends to prevent grievances which could have been prevented through information and advised them to contact the Commission to deal with businesses that fail to pay dividends to shareholders.

 Joyce Esi Boakye, Head of Listing and New Products, Ghana Stock Exchange (GSE), called on shareholders to take advantage of decreased index to increase their shares in securities trading on the stock market.

She asked the members to contribute towards making the association stronger and effective in pushing for reforms that will promote payment of dividends and protect their shares.

The GSE, she noted, was ready to help revamp the association to make it vibrant and fit for purpose and create conducive environment for more the public to invest on the stock market.

General Secretary of the association, Sampson Ashong, said the group was undertaking measures to compel listed companies to adhere to good governance as part of measures to protect the interests of shareholders.

He said the association, would from next year hold training programmes for members on financial, accounting and corporate governance policies to prepare them for AGMs of their various companies.

He noted that the final phase for the development of a website was being done to share daily stock market related information to the members.

BY CLAUDE NYARKO ADAMS

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