@BusinessDaily

EDITORIAL: Regulator’s crackdown on ex-CMC bosses timely

6 months ago, 8 Mar 17:50

By: Editorial

The capital markets regulator has showed great steel in pursuing and penalising former directors of motor dealer CMC Holdings. The CMC board members and top management who were involved in siphoning of the company’s cash and stashing it in an offshore account showed serious affront on the trust bestowed on them by shareholders of the company. It will go down as one of the darkest chapters in Kenya’s capital market history, which threatened to tear down investors’ confidence in the stock exchange. The Capital Markets Authority (CMA) action sets an exemplary precedent that will act as a strong deterrent to current and future board members of public listed companies. The confidence of investors in Nairobi Securities Exchange (NSE) listed firms and other CMA regulated entities will be greatly inspired by the regulator’s action. In going after the former CMC directors, who included former powerful head of public service Jeremiah Kiereini, the CMA has proved that it has teeth which can indeed bite even the mighty. The investigation, which has taken many years and involved even external consultants, has been painstaking. That did not stop the former directors from making a robust push against the regulator. That they were found guilty of the offences laid against them also proves that the CMA can oversee credible investigations against market breaches. The CMC case should lay a firm foundation for the CMA to act against other market breaches. Going by recent complaints by minority investors in recent and ongoing takeover transactions, the regulator clearly has its work cut out. The minority investors feel that they have been handed the short end of the stick when majority owners are allowed to set takeover prices of their companies. The suspension of shares of takeover companies from trading has not helped, as it has locked out the investors from liquidating their investment and also denied them the right to realize their market-determined price. There are also complaints of minority investors feeling that they do not have a voice on boards of listed firms. The regulator could start by urgently reviewing and implementing new regulations to strengthen protection of minority investors. 
Read More


Category: business corporate news lifestyle economy opinion markets

Suggested

2 hours ago, 11:43
@StandardMedia - By: Maria Nene
The psychology of colour in a building

There is more that goes into the choices than just beauty. ...

Category: business news
2 hours ago, 11:57
@StandardMedia - By: Maria Nene
The psychology of colour in a building

There is more that goes into the choices than just beauty. ...

Category: business news
3 hours ago, 10:58
@StandardMedia - By: Valentine Kondo
Will President Uhuru Kenyatta's warning to Passenger Service Vehicles succeed?

President Uhuru Kenyatta has warned operators who are overcharging passengers to stop else their licences withdrawn ...

Category: business news
3 hours ago, 10:58
@CapitalFMNews - By: Agence France Pres ...
Amazon considering opening 3,000 cashierless stores: Bloomberg

WASHINGTON, United States, Sept 20 - Amazon is considering opening up to 3,000 new cashier-less stores by 2021 to vie for shoppers at convenience stores Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 12:09
@BusinessDaily - By: Kazungu Samuel
KPA leases storage facilities to ease congestion at ICD

Five periphery storage facilities leased by Kenya Ports Authority (KPA) to boost Nairobi ICD capacity are expected to start receiving containers. ...

Category: business markets news
2 hours ago, 11:21
@BusinessDaily - By: Mwangi Ndirangu
Kevian inks potato seeds deal with Irish firm

Potato farmers in Kenya have been experiencing low and poor harvests. ...

Category: business opinion news

@BusinessDaily

EDITORIAL: Regulator’s crackdown on ex-CMC bosses timely

6 months ago, 8 Mar 17:50

By: Editorial
The capital markets regulator has showed great steel in pursuing and penalising former directors of motor dealer CMC Holdings. The CMC board members and top management who were involved in siphoning of the company’s cash and stashing it in an offshore account showed serious affront on the trust bestowed on them by shareholders of the company. It will go down as one of the darkest chapters in Kenya’s capital market history, which threatened to tear down investors’ confidence in the stock exchange. The Capital Markets Authority (CMA) action sets an exemplary precedent that will act as a strong deterrent to current and future board members of public listed companies. The confidence of investors in Nairobi Securities Exchange (NSE) listed firms and other CMA regulated entities will be greatly inspired by the regulator’s action. In going after the former CMC directors, who included former powerful head of public service Jeremiah Kiereini, the CMA has proved that it has teeth which can indeed bite even the mighty. The investigation, which has taken many years and involved even external consultants, has been painstaking. That did not stop the former directors from making a robust push against the regulator. That they were found guilty of the offences laid against them also proves that the CMA can oversee credible investigations against market breaches. The CMC case should lay a firm foundation for the CMA to act against other market breaches. Going by recent complaints by minority investors in recent and ongoing takeover transactions, the regulator clearly has its work cut out. The minority investors feel that they have been handed the short end of the stick when majority owners are allowed to set takeover prices of their companies. The suspension of shares of takeover companies from trading has not helped, as it has locked out the investors from liquidating their investment and also denied them the right to realize their market-determined price. There are also complaints of minority investors feeling that they do not have a voice on boards of listed firms. The regulator could start by urgently reviewing and implementing new regulations to strengthen protection of minority investors. 
Read More

Category: business corporate news lifestyle economy opinion markets

Suggested

2 hours ago, 11:43
@StandardMedia - By: Maria Nene
The psychology of colour in a building

There is more that goes into the choices than just beauty. ...

Category: business news
2 hours ago, 11:57
@StandardMedia - By: Maria Nene
The psychology of colour in a building

There is more that goes into the choices than just beauty. ...

Category: business news
3 hours ago, 10:58
@StandardMedia - By: Valentine Kondo
Will President Uhuru Kenyatta's warning to Passenger Service Vehicles succeed?

President Uhuru Kenyatta has warned operators who are overcharging passengers to stop else their licences withdrawn ...

Category: business news
3 hours ago, 10:58
@CapitalFMNews - By: Agence France Pres ...
Amazon considering opening 3,000 cashierless stores: Bloomberg

WASHINGTON, United States, Sept 20 - Amazon is considering opening up to 3,000 new cashier-less stores by 2021 to vie for shoppers at convenience stores Kenya breaking news | Kenya news today | ...

Category: business
1 hours ago, 12:09
@BusinessDaily - By: Kazungu Samuel
KPA leases storage facilities to ease congestion at ICD

Five periphery storage facilities leased by Kenya Ports Authority (KPA) to boost Nairobi ICD capacity are expected to start receiving containers. ...

Category: business markets news
2 hours ago, 11:21
@BusinessDaily - By: Mwangi Ndirangu
Kevian inks potato seeds deal with Irish firm

Potato farmers in Kenya have been experiencing low and poor harvests. ...

Category: business opinion news
Our App