The Nigerian Stock Exchange (NSE) may sanction the likes of Union Bank, Lafarge Africa, Med-View Airline and 48 other companies for their failure to comply with corporate governance standards of the Nigerian capital market.
According to a regulatory report, the companies represent about 31% of the total number of quoted companies in the country.
The deficient companies were placed in three broad categories, (companies with record of recurring multiple deficiencies, firms that failed to submit their financial as at when due, and companies with unhealthy concentration of shares in the hands of major investors.)
It was however gathered that the NSE was already engaging with the deficient companies on their compliance plans, and while delisting is usually the last option, it is imminent if requirements are not met.
Other companies placed on red alerts are Transcorp Hotels, AG Leventis Nigeria, Niger Insurance Plc, Aso Savings & Loans, Capital Oil, Deap Capital Management & Trust Plc, DN Tyre & Rubber Plc, Evans Medical Plc, Anino International Plc, FTN Cocoa Processors Plc, Goldlink Insurance Plc, Guinea Insurance Plc, International Energy Insurance Plc, Juli Plc, Omatek Ventures Plc, RT Briscoe Plc, Resort Savings & Loans Plc, Staco Insurance Plc, Standard Alliance Insurance Plc, Unic Diversified Holding Plc, Union Homes Savings & Loans Plc and Universal Insurance Company Plc.
Others include Aluminium Extrusion, Austin Laz, Capital Hotel, Caverton Offshore Support Group, Cement Company of Northern Nigeria, Champion Breweries, Conoil, CWG, Ekocorp, Ellah Lakes, E-Tranzact International, Golden Guinea Breweries, Global Spectrum Energy Services, Infinity Trust Mortgage Bank, Medview Airline, Multi-Trex Integrated, Nigerian-German Chemicals, Notore Chemical Industries, Omoluabi Mortgage Bank, Portland Paints and Products Nigeria, Prestige Assurance, Roads Nigeria, Skyway Aviation Handling Company (SAHCO), Smurfit Prints, Thomas Wyatt Nigeria, Tourist Company and Union Dicon Salt.
It was learnt that nearly half of the deficient companies suffered from free float deficiency, unhealthy concentration of shares in the hands of major investors and their insiders.
Other flagged companies were placed on red alert as a result of recurring corporate governance weaknesses, especially failure to submit operational reports within scheduled timeline.