By Fred SARPONG
The Board of Directors of the Ghana Stock Exchange (GSE) has ordered all the listed companies in the country, especially those with less than 100 million authorised shares, to increase their authorised shares to a minimum of 100 million by the end of December, 2012.
BusinessWeek learnt that the directive is to enable the exchange to become a vibrant stock exchange.
Diana Okine, the public relations officer of the GSE, told BusinessWeek that the directive is to create more shares that will enable more individuals and portfolio investors to buy into listed companies.
By directing listed companies to increase the number of their authorised shares, the GSE is opening the door for them to issue bonus shares, do a rights issue, or that new shares on the primary market without having to seek new approval from their shareholders first.
She explained that it is the prerogative of the listed companies to either issue bonus shares to their shareholders or rather come out with a rights issue.
BusinessWeek can confirm that some of the listed companies have started issuing bonus shares to their shareholders by giving additional five shares to each shareholder.
Actually, some listed companies which are already having even more than 100 million authorised shares as at December 2010. For instance, Ecobank Ghana Limited and UT Bank Limited authorised shares stand at 230.13 million and 248.75 million respectively by December, last year.
By this directive some listed companies need to create more than 80 million shares, in addition to their existing ones by December, next year.
Okine believes that these companies will be able to do so without any doubt, through a shareholders’ resolution.
The exchange was incorporated in July 1989, commenced trading in 1990, and currently has around 33 listed companies. Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.
The objective of the GSE is to provide the facilities and framework to the public for the purchase and sales of bonds, shares and other securities; to control the granting of quotations on the securities market in respect of bonds, shares and other securities of any company, corporation, government, municipality, local authority or other body corporate; and to regulate the dealings of members with their clients and other members.
Also, it is to coordinate the stock dealing activities of members and facilitate the exchange of information including prices of securities listed for their mutual advantages and for the benefit of their clients; and to cooperate with associations of stockbrokers and stock exchanges in other countries, and to obtain and make available to members information and facilities likely to be useful to them or to their clients.
The Board of Directors of the Ghana Stock Exchange (GSE) has ordered all the listed companies in the country, especially those with less than 100 million authorised shares, to increase their authorised shares to a minimum of 100 million by the end of December, 2012.
BusinessWeek learnt that the directive is to enable the exchange to become a vibrant stock exchange.
Diana Okine, the public relations officer of the GSE, told BusinessWeek that the directive is to create more shares that will enable more individuals and portfolio investors to buy into listed companies.
By directing listed companies to increase the number of their authorised shares, the GSE is opening the door for them to issue bonus shares, do a rights issue, or that new shares on the primary market without having to seek new approval from their shareholders first.
She explained that it is the prerogative of the listed companies to either issue bonus shares to their shareholders or rather come out with a rights issue.
BusinessWeek can confirm that some of the listed companies have started issuing bonus shares to their shareholders by giving additional five shares to each shareholder.
Actually, some listed companies which are already having even more than 100 million authorised shares as at December 2010. For instance, Ecobank Ghana Limited and UT Bank Limited authorised shares stand at 230.13 million and 248.75 million respectively by December, last year.
By this directive some listed companies need to create more than 80 million shares, in addition to their existing ones by December, next year.
Okine believes that these companies will be able to do so without any doubt, through a shareholders’ resolution.
The exchange was incorporated in July 1989, commenced trading in 1990, and currently has around 33 listed companies. Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.
The objective of the GSE is to provide the facilities and framework to the public for the purchase and sales of bonds, shares and other securities; to control the granting of quotations on the securities market in respect of bonds, shares and other securities of any company, corporation, government, municipality, local authority or other body corporate; and to regulate the dealings of members with their clients and other members.
Also, it is to coordinate the stock dealing activities of members and facilitate the exchange of information including prices of securities listed for their mutual advantages and for the benefit of their clients; and to cooperate with associations of stockbrokers and stock exchanges in other countries, and to obtain and make available to members information and facilities likely to be useful to them or to their clients.
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