ZSE suspends Zeco Holdings

Oliver Kazunga, Senior Business Reporter
THE Zimbabwe Stock Exchange (ZSE) has suspended the listing of an engineering firm, Zeco Holdings for failing to pay listing fees and failure to convene annual general meetings with shareholders.

The three-month suspension was effected last Thursday.

In a statement, ZSE chief executive officer Mr Alban Chirume said the suspension was meant to allow the company to comply with the bourse’s listing requirements.

“The ZSE hereby notifies the investing public of the suspension from trading in shares of Zeco Holdings Limited for a period of three months to allow the company to comply with the following continuing obligations:

“Convening shareholders’ meeting for the years 2014 and 2015; distributing outstanding annual reports for the aforesaid financial years to shareholders and payment of outstanding annual listing fees.”

Mr Chirume said the suspension of Zeco was above board as the stock exchange had sought permission of the Securities and Exchange Commission of Zimbabwe pursuant to Section 64(a) (ii) of the Securities and Exchange Act [Chapter 24.25].

“In terms of Section 1.8 of the ZSE Listings Requirements, the company should continue to discharge its obligation to the shareholders and the ZSE after the suspension,” he said.

The firm is into engineering, fabrication and plastic blow moulding.

In the past, a number of analysts have questioned Zeco’s continued listing on the ZSE as the company which is generally controlled and run by businessman Dr Philip Chiyangwa ignored the basic rules of corporate governance.

In 2014, Zeco was ranked the worst governed company on the stock exchange at the Institute of Chartered Secretaries and Administrators of Zimbabwe awards (ICSAZ).

As a result, the company scored badly on the ICSAZ adjudication template prepared by the institution.

The adjudication process considered three categories; shareholder protection, shareholder practices and sustainability reporting and best board practices.

@okazunga

ZSE suspends Zeco Holdings