Listed firms given go ahead to pay dividends

Lewis Njoka @LewisNjoka

The Capital Markets Authority (CMA) has allowed boards of issuers to declare and pay dividends to shareholders without holding an Annual General Meeting (AGM) as is the norm. 

CMA has also relaxed the requirement that listed companies publish their financial statements in two national newspapers saying it will now suffice to publish the results on own website as well as on regulator’s and the Nairobi Securities Exchange(NSE) websites. 

These are part of measures the regulator has adopted to mitigate disruption in capital markets and ensure business continuity during the Covid-19 pandemic.

The announcement by CMA follows a similar move by the acting commissioner for co-operatives Geoffrey Njang’ombe who allowed Saccos, whose accounts have been audited, to issue dividends prior to holding AGMs as required by law.

“Given the need to postpone AGMs, the respective boards of issuers of securities have been allowed to proceed to declare and pay the dividends to their shareholders,” said CMA acting chief executive Wycliff Shamiah.

Similarly, the NSE has put into operation mobile and online trading to ensure normal operations continue during the pandemic.