NSE to Sanction Companies over Delayed Dividend Payments

The Nigerian Stock Exchange (NSE) is to fine companies that fail to pay dividends after due dates, as part of efforts to protect investors and make the market more attractive.

Specifically, any company that fails to pay dividend on due date shall attract a fine of five per cent of the total dividend amount declared.
Similarly, failure by the company to issue bonus shares within three months after approval by shareholders at an annual general meeting (AGM) shall attract a fine of five per cent of the nominal value of the shares.

These and more are contained in the amended new rules of the NSE for listed of companies which have just been approved bythe Securities and Exchange Commission (SEC). Continue Reading