Stakeholders in the financial market have expressed dismay over the rate at which public companies violate extant rules of their respective regulators, thereby attracting heavy fines. According to a cross-section of key shareholders that spoke with Financial Vanguard, recklessness and carelessness on the part of companies’ chief executives that give rise to such penalties should be curtailed, or the board and management of such companies should either be sacked or be made to pay the fines instead of using shareholders’ fund.
They said that shareholders bear the brunt of their carelessness as the company’s profit is reduced as a result and in effect lowers the dividends accruing to members of the company. Financial Vanguard investigation showed that, a total of N241.529 million was paid as fines by four banks — FCMB Group Plc, Sterling Bank Plc, Access Bank Plc and United Bank for Africa (UBA) for flouting the Central Bank of Nigeria (CBN) directives in 2014 financial year alone.
Also, this year, the Nigerian Stock Exchange (NSE) fined 33 quoted companies N63.8 million. Their offence was reneging on their post-listing rules requirement in relation to timely submission of yearly and quarterly financial statements.
The original article can be found at vanguardngr.com