Economy
Capital Market, Securities Exchange Clash Over Shareholder Rights Cutoff Dates Capital
Addis Fortune · 2 hours ago · Read the Full Story on Addis Fortune
AI SUMMARY
The Ethiopian Securities Exchange and the Capital Market Authority disagree on who should determine cutoff dates and procedures for secondary market shareholder rights.
- Executives of the Ethiopian Securities Exchange (ESX) wrote to the Ethiopian Capital Market Authority (ECMA) seeking clarification and a centralized cutoff date for secondary market shareholder rights.
- The dispute covers dividends, meeting attendance, voting rights, and board seat contests.
- ESX proposed using June 30 or the date of audited financial statement publication as cutoff dates.
- ECMA rejected retroactive record dates and stated that the existing ESX Rulebook and CSD procedures provide sufficient guidance.
- ECMA shifted responsibility for administering rights back to issuers, the ESX, and the Central Securities Depository.
- Associate professor Dakito Alemu opposes a uniform cutoff date and argues that setting record dates should be the issuer's responsibility.
- Former NBE official Yisak Teka argues that the Authority should issue a directive for consistent administration of rights across all entities.
- The ESX currently has seven listed companies, with nine certified trading members.
Related
IMF to Discuss Treasury Securities Issuance Directive with Ethiopian Government in November
The Reporter (Amharic) · 6 hours ago
Call for Policy Reform on Interest Rates and Repayment Periods for Agricultural Machinery Loans
The Reporter (Amharic) · 1 hour ago
Ethiopia’s OTC Market Targets 8 Securities Outside Main Listing Requirements
BirrMetrics · 8 hours ago
BitFuFu Evaluates Terminating $4.1M Ethiopian Bitcoin Mining Deal Amid Power Dispute
Capital Ethiopia · 7 hours ago