The managers of the Ghana Stock Exchange(GSE) have gotten tougher on listed companies as it sanctions another company for non compliance of its rules and regulations.
Citi Business News can confirm that the Cocoa Processing Company(CPC) is the next company to be suspended from the bourse . CPC which produces Ghana’s flagship chocolate, the Golden Tree brands has been performing poorly on the bourse for some time now.
This latest suspension follows an earlier announcement this week, where five companies were suspended after which two were re-admitted onto the bourse.
According to the Ghana Stock Exchange, the decision was due to the failure of the said companies to publish their financial accounts, hold Annual General Meetings as well as pay for listing fees.
Speaking to Citi Business News on the development, the Deputy Managing Director of the Ghana Stock Exchange Mr. Ekow Afedzie explained that the move is part of a normal procedure to improve the stock market.
Reacting to the sudden turn of events on the bourse, Mr. Afedzie retorted briefly, “Its normal. It is part of our enforcement obligations. It is normal”.
CPC’s performance on the bourse
CPC’s performance on the GSE has been abysmal over the years. The situation was attributed to the growing debt of the company. CPC is said to be unable to purchase cocoa from the COCOBOD to process for chocolate and beverages.
CPC workers call for delisting
Workers of CPC in recent times appealed to government to delist the company from the Ghana Stock Exchange(GSE) due to its dwindling performance over the years.
According to them, it will be financially viable for government to delist and control the company since it is the majority shareholder.
Currently, COCOBOD owns about 57 percent of the shares, while the Ministry of Finance owns about 26 percent, with SSNIT controlling about 11 percent. The remaining shares which is less than 10 percent is owned by individuals.
CPC which produces Ghana’s flagship chocolate, the Golden Tree brands has been performing poorly on the bourse for some time now.
By: Lawrence Segbefia/citibusinessnews.com/Ghana