Modupe Gbadeyanka
By Modupe Gbadeyanka
The Nigerian Stock Exchange (NSE) has extended deadline for the filing of financial statements for the first quarter of 2020 by 60 days.
The exchange made this announcement at the weekend, explaining that the reason for this extension was because of the devastating effect of the Coronavirus disease.
Normally, companies listed on the nation’s stock exchange are supposed to file their financial results on or before April 30, 2020.
But due to the disruption caused by the virus on businesses in most parts of the country, especially in Lagos, Abuja and Ogun, where there are total lockdowns, the exchange has extended the deadline by two months.
The NSE said in a circular that companies having their year-ends at March 31, June 30, September 30 and December 31 are now required to submit their statements latest June 29, 2020, while those with year-ends at April 30, July 31 and October 31 should file latest July 29, 2020.
Also, the exchange has announced an extension for the filing of audited financial statements of quoted firms for the 2019 financial year.
The NSE, in the same circular, said submission of Audited Financial Statement of organisations with December 31 year-end is now May 29, 2020, while those with March 31 year end has now been moved from June 29, 2020 to August 28, 2020.
In addition, the exchange said it has waived the enforcement of the Provisions of Rule 20.8 of the Rules Governing Transactions with Related Parties or Interested Persons “until further notice.”
The NSE explained that, “This waiver is necessary in order to ensure that the operations of listed companies are not inadvertently constrained at this time.”
It said, “Consequently, all listed companies that choose to enter into related party transactions that are within the purview of Rule 20.8 during this period of waiver of enforcement, are required to:
“(a) Include every resolution proposal setting forth specific details on related party transactions in the notice of board meetings; and obtain the approval of the board before entering into any related party transactions within the purview of Rule 20.8. provided that no transaction’s term shall exceed a term of longer than one financial year;
“(b) Publish an announcement via the exchange’s issuers’ portal within 24 hours of the board’s approval of each transaction, and the announcement shall describe each transaction with specific relevant details as may be required by the exchange; and
“(c) Disclose all such approved related party transactions as notes in its quarterly financial statements for the period in which they occur, and in the final accounts.”
