Adu Anane Antwi

Companies listed on the Ghana Stock Exchange (GSE) have been urged to be honest with their shareholders with regard to information they pass on to them.

Adu Anane Antwi, Director General of the Securities Exchange Commission (SEC), who gave the warning yesterday in Accra during a workshop, organized for listed companies on disclosures by the Ghana Stock Exchange (GSE).

According to the Director General, companies often deny the investing public vital information, forgetting that the latter, by law, were supposed to be privy to everything that transpires in them.

“Ghana has weak corporate laws on disclosures. A company cannot, for instance, determine what a director receives as remuneration, fees, bonuses, etc because they think such information should be kept secret from shareholders.”

He said this has come about as a result of the lack of effective enforcement even though the Securities Industry Law (PNDCL 333) mandates that all such information should be communicated to investors.

“Even most companies have refused to disclose in their reports to SEC who their top 20 investors are and where they are keeping their registers. But listed companies are expected to render their annual reports three months prior to the close of the financial year. They are also to file quarterly as well as audit sub-committee reports,” Mr Anane Antwi stated.

He revealed that companies lacked the capacity and will to disclose, hence their lackadaisical attitude.

“Most of company secretaries just write and don’t take advice on their company’s policy issues.”

In order to tackle the foregoing, Mr. Anane Antwi tasked listed companies to establish Investor Relations (IR) units to handle matters pertaining on disclosures within them.

Dr Sam Mensah, chairman of SEC, in a welcome address, called on listed companies to take information disclosure seriously since that would determine their attractiveness to investors and entrench investor confidence.

He could not fathom why listed companies borrow from banks at between 20 and 30 percent instead of floating corporate bonds on the market.

“You complain that the cost of borrowing is too high yet you don’t want to issue corporate bonds.”

Kofi Yamoah, Managing Director of GSE, in a remark, advised listed companies to ensure that disclosures were treated with much more eminence so as to attract more investments.

 By Samuel Boadi