Modupe Gbadeyanka
By Modupe Gbadeyanka
The Securities and Exchange Commission (SEC) has said all public companies are required to regularly inform the investing the impact of the deadly COVID-19 on their business operations.
This disclosure was made in a circular issued by the commission, which said in compliance with the federal government’s directives on the cessation of movement in Lagos, Ogun and Abuja, it has activated its business continuity process.
In the circular dated March 31, 2020, the agency said during the period of the lockdown in the three cities, its staff would be working remotely, while all its electronic channels will remain open to provide the necessary support to capital market stakeholders.
“All public companies are required to continue to make material disclosures to investors on the impact of COVID-19 Pandemic on their business operations.
“They should also continue to disclose the trend and outlook for the company, and updates on implementation of business continuity plans. Public companies are to publish these disclosures on their websites and on other relevant media,” the circular said.
Furthermore, it stated that, “Public companies who plan to conduct AGMs are required to ensure that the conduct of the meetings comply with the provisions of the Companies and Allied Matters Act, the Investments and Securities Act, the SEC Rules and Regulations, relevant government and health circulars and guidelines issued in this regard.”
Continuing, SEC stressed that debt issuers are also expected to continue to engage trustees to ensure that relevant disclosures are provided, adding that these trustees are required to provide updates to the commission accordingly.
The commission enjoins all CMOs to continue to monitor the real and potential risks COVID-19 may have on their business operations and the discharge of services to investors and clients, stating that for further guidance, the commission may be contacted through the dedicated email addresses for filing CMOs returns.
SEC enjoined all issuers and trustees who may require further guidance to contact the commission through the [email protected], [email protected] and [email protected].
It promised to continue to engage and collaborate with all stakeholders to ensure that the capital market remains resilient.
“While we work to maintain market stability, we encourage everyone to continue to comply with all directives issued by the Federal Government and relevant agencies during this challenging period,” the agency said.
