By Eugene Onyeji
Shareholders expectation of reaping from their Investments this year is hanging on the balance, as they may have to wait a little longer to receive their dividends amid likely postponement of AGMs slated for between March and June 2020.
This is as a result of the advice from the Nigeria Centre for Disease Control (NCDC) to the effect that mass gatherings could possibly aggravate the spread of coronavirus if extra preventive measures are not put in place.
According to TheBridge Securities’ 2020 closure of register – dividends and bonuses published on their website, 17 companies have scheduled their AGMs between March and June this year.
Originally scheduled to hold this month are, Vitafoam Nigeria Plc, March 4; Zenith Bank Plc March 16: Africa Prudential, March 23; Afriland Properties, March 23; United Capital, March 24; Transcorp Hotels Plc, March 24; Transnational Corporation of Nigeria Plc, March 25; UBA, March 27, and Guaranty Trust Bank (GTB), March 30.
Vitafoam Nigeria Plc and Zenith held their AGMs on March 4 and 16, 2020 respectively and dividend paid to shareholders accordingly.
As at press time, Africa Prudential Registrars had taking to their SME and Email platforms to announce the postponement of AGMs of Transnational Corporation of Nigeria Plc, Africa Prudential Plc, Transcorp Hotels Plc and Afriland Properties to its shareholders.
The massages read in parts “The decision comes on the heels of the recent developments around the novel COVID-19 and the need to follow the guidelines provided by the World Health Organization, the National Centre for Disease Control and the Federal Government of Nigeria amongst others. We apologise for any inconvenience this postponement might cause. A new date for the meeting will be communicated in due course.”
Shareholders of these companies are already lamenting.
One of the recipient of the notice told the TheNiche newspaper, “You know dividend is usually approved at the AGM, sincerely I don’t know how long we will wait. I had looked forward to receiving the money, besides our economic environment is not friendly; I hope the authorities will do something to save the situation”
For the month of April, we have Custodian Investment’s AGM on April 15, Nigerian Breweries, April 22, and Access Bank on April 30.
In May, Infinity Trust Mortgage Bank will hold their AGMs on May 7, while MTN Nigeria Communications is on May 8.
Come June, Nestle Nigeria will hold its AGM on June 2; Dangote Cement, June 15; Stanbic IBTC Holdings will hold on June 17.
The notice from the NCDC was further reiterated by the authorities of the Nigerian Stock Exchange (NSE) to all the stakeholders through a circular NSE/RD/LRD/CIR4/20/03/19 released on March 19, 2020.
“Mass gatherings can amplify the spread of infectious diseases including coronavirus disease (COVID-19), where this is circulating. The Nigeria Centre for Disease Control (NCDC) is constantly monitoring the epidemiological situation in the country. In view of the rapid evolution and global transmission of coronavirus, NCDC will make the recommendation for cancellation of mass gatherings in line with guidelines from the World Health Organization (WHO).
“At this stage, we are not advising the cancellation of gatherings, but our advice may change as the epidemiological situation evolves. This is assessed on a daily basis. Regular updates can be found on www.covid19.ncdc.gov.ng”, NCDC said.
The Nigerian Stock Exchange (NSE) has also called the attention of companies to the regulatory provisions of the time companies are allowed to hold their AGMs.
“If an Issuer fails to hold its annual general meeting within nine (9) months from the end of its financial year end or within such extended period as may be approved by the Corporate Affairs Commission; the Issuer shall file a report with The Exchange within ten (10) business days of the end of the stipulated period explaining the reasons for their default; and they shall make an announcement in that regard in at least two (2) national daily newspapers within five (5) business days of receiving The Exchange’s approval to make the announcement. Issuers are therefore advised to utilize the windows provided by these rules as may be appropriate while planning their AGMs’’, the NSE stated.
A number of high profiled programs were either cancelled or postponed in the last one week, as government and other stakeholders devised means to curtail the spread of the ravaging disease. As at the last count, 30 cases of infected persons have been confirmed in Nigeria.
Stakeholders are awaiting guidance from listed companies in the country, which have their Annual General Meetings (AGMs) slated for between March to June 2020.