The Zimbabwe Stock Exchange (ZSE) has issued a trading suspension on shares of engineering firm, ZECO Holdings after the company entered into a significant transaction, whose effect was to change its sphere of activity without either ZSE or Shareholders’ approval.
The suspension is with effect from today.
In a statement, ZSE chief executive officer Justin Bgoni said the halt was meant to allow the company to take remedial action to this breach of the listing requirements.
”Members of the public are hereby advised that the ZSE has instituted a unilateral Securities Halt in the trading of shares in ZECO Holdings Limited (the “Issuer” or “ZECO”) with effect from 8 February 2022. ZECO entered into a significant transaction, whose effect is to change the sphere of activity of the Issuer, without either ZSE or Shareholders’ approval,”
“The ZSE has since sanctioned ZECO to issue a public notice detailing the circumstances of the transaction and proposed remedial actions to this breach of the ZSE Listing Requirements. In the interim, the ZSE will proceed to halt trading in the shares of ZECO until issuance of a full announcement by ZECO Holdings Limited.”
Investors will not be able to buy or sell ZECO shares during the period the Securities Halt is in effect.
This is not the first time ZECO has been suspended for failing to observe basic tenets of corporate governance.
In 2016, the company was suspended from the bourse for failing to pay listing fees and failure to convene annual general meetings with shareholders.
In 2014, the company was ranked the worst governed company on ZSE at the Institute of Chartered Secretaries and Administrators of Zimbabwe awards (ICSAZ).
