Listed firms that were scheduled to hold their Annual General Meetings (AGMs) have been told to defer these meetings to a later date. This follows a Presidential Directive that has suspended public gatherings and meetings, in an effort to stop further spread of Coronavirus.
Listed firms and licensed collective investment schemes that were scheduled to hold their Annual General Meetings (AGMs) in March, April and May 2020, are advised to defer the meetings to a later date while ensuring all affected stakeholders are notified in good time.
On the list of those most affected are commercial banks that are yet to release their results for financial year ended 31st December 2019. A delay in the approval of financial statements by shareholders has implications, including disruption in approval of expenditures or even payment of dividends.
Stanbic, KCB Group are on the list of commercial banks that have already released their 2019 financial results. Other listed firms include Unga Limited, Kakuzi and BAT.
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Also severely hit are Deposit-Taking Savings and Credit Co-operatives (SACCOs), who are required to hold their annual general meetings before the end of June each year.
In a statement, Capital Markets Authority (CMA) has moved to calm jitters in financial markets by urging investors to shift to mobile and or online trading platforms.
CMA told investors that it was working closely with Nairobi Securities Exchange (NSE), Central Depository and Settlement Corporation (CDSC) and the other market players, to ensure normal operations during this time, despite the scaled-down physical interaction measures taken.
CMA Acting Chief Executive, Mr. Wyckliffe Shamiah, said the Authority has put in place necessary business continuity plans to ensure the safe and orderly conduct of its business during this time and is working with the entire capital markets industry so that appropriate measures are taken as the usual service is made available.
He warned that the overall impact of COVID-19 on the economy is likely to be enormous and thus the Authority is looking into measures that shall alleviate resulting suffering to the industry.
The NSE Chief Executive, Mr. Geoffrey Odundo, said the bourse is showing signs of stabilization as witnessed by recent recovery in activity. “We urge investors to take advantage of online and mobile trading platforms to participate in the market and track their investments’’, said Mr Odundo. According to Central Depository and Settlement Corporation (CDSC) CEO Mr. Nkoregamba Mwebesa, the corporation has issued a circular to all its stakeholders
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