SUSPENSION OF SIX COMPANIES FROM TRADING ON THE GHANA STOCK EXCHANGE
In recent happenings, six companies namely African Champion Industry Limited (ACI), Clydestone Ghana Limited, Golden Web, Pioneer Kitchenware Limited, Cocoa Processing Company Limited, and Transaction Solutions Limited (TRANSOL) have been suspended from trading on the Ghana Stock Exchange(GSE). This suspension occurs at the back of the failure of these companies to provide current and accurate financial information about the companies.
The suspension raises the question of its implications of stocks held by the ordinary Ghanaian and various investors in the above mentioned companies. Now, the Ghana Stock Exchange can suspend any company trading in stocks when required to protect investors and the public interests, if they do not meet requirements. The requirements include;
- Provision of current, accurate, or adequate information about the company.
- Accuracy of publicly available information, including the company’s press releases and reports, its current operational status and financial condition.
- The ability to clear and settle transactions in the stock.
And what happens if you already own stock in that company? If a stock is suspended after it has been purchased, the investor will not be able to sell the shares to the market but will still pay for them. This is why it is entirely necessary of these companies to provide accurate and current financial information to investors and the general public.