Bank of Maldives and MTDC at risk of trading penalties over AGM delays: Stock Exchange

The Maldives Stock Exchange (MSE) has warned that the Bank of Maldives (BML) and the Maldives Tourism Development Corporation (MTDC) could both face trading restrictions over an ongoing failure to hold their respective annual general meetings (AGMs).

MSE CEO and Managing Director Hassan Manik told Minivan News that both companies had yesterday received final notices to hold their AGMs as soon as possible, after previously failing to hold the meetings no later than five months from the end of the financial year.

Both companies are now said to have agreed to announce dates within the next seven days for when the respective AGMs will be held, according to the MSE.

Manik stressed that under the MSE’s listing guidelines, failure by a company to hold an AGM within the required deadline could see it facing penalties including being suspended from trading securities.

“We have communicated to both companies to hold their AGMs as soon as possible. This is the first time we have gone public with such an announcement, but we want to make sure these companies are providing timely information,” he said. “Both have commented that they will be publicly declaring a date for their meetings within a week.”

According to Manik, while companies listed on the stock exchange regularly were unable to hold their AGMs within the required time period, he maintained that all groups listed were trying to meet the deadline outlined in its listing rules.

However, he claimed that in the case of both the MTDC and BML, it had been “a long-time” since the respective deadlines had passed, adding that both groups’ shareholders should be made aware of their operatons.

A BML spokesperson told Minivan News today that the failure to have held its AGM had been the result of delays in appointing board members  to the company.

“We have kept both the MSE and the Capital Market Development Authority (CMDA) informed about this matter, ” the spokesperson said.  “We are expecting to announce a date for our AG tomorrow.”

A spokesperson for the MTDC was not responding to calls at the time of press.

Local media has reported that the MSE has now set a deadline for both companes to hold their AGMs by October 24 or face action under its listing rules.

CMDA fines

Back in May, the MTDC, BML and the State Trading Organisation (STO) were all fined by the CMDA after they failed to publish quarterly reports and financial statements for their operations within an allotted time period.

The MTDC and the BML were each fined up to Rf30,000 for failing to publish annual financial statements as stipulated under the regulations. The statistics must be published within four months after the end of a financial year.

The companies had requested for deadline extension citing difficulties in producing the report within the given time frame, CMDA said. However the extension was not granted as the reasons provided were not acceptable, the authority claimed at the time.