SEC TO SANCTION UNREGISTERED PUBLIC COMPANIES
The Securities and Exchange Commission (SEC) has set June 30, 2014 as deadline for registration of shares by all public companies. In a recent notification it sent to all public companies, SEC stated that public companies who fail to meet the deadline would be sanctioned.
The Investments and Securities Act (ISA) 2007 and SEC Rules and regulations give the commission the power to register all securities of public companies. However, the regulator of the capital market said, while some public companies in Nigeria have registered their securities, some are yet to comply with the ISA provisions.
In notification to the public companies SEC said: “This is to draw the attention of all public companies in Nigeria to the provisions of Section 54 (1) of ISA No. 27, 2007 and Rule 279 (1) (a) of the SEC Rules and Regulations, to the effect that all securities of public companies shall be registered with the Commission.
“All Public Companies in Nigeria are expected to register their securities with the Commission upon incorporation or conversion from a private company. The Securities and Exchange Commission has however observed that some public companies in Nigeria are yet to comply with the above stated provisions.All existing public companies with securities not registered with the Commission are strongly advised to comply with the provisions of the law by registering their securities with the Commission before June 30, 2014. At the expiration of this date, all public companies whose securities are not registered with the Commission will be sanctioned appropriately.”
Public companies, according to the Companies and Allied Matters Act, 1990, are firms that have more than 50 shareholders.