Capital Authority, Securities Exchange Spar Over Who Decides Shareholder Rights
As listed banks head into annual general meetings, the Securities Exchange wants the regulator to fix a cut-off date for dividends and votes, while the Authority insists existing rules already assign the job. Banks, particularly listed lenders, are heading into their annual general meetings (AGMs) without a clear answer to a basic question. When shares change hands in the secondary market, who receives the dividend, attends the meeting, votes, and contests a board seat? Executives of the Ethiopian Securities Exchange (ESX) wrote to the Ethiopian Capital Market Authority (ECMA) seeking clarification and a clear cutoff date, after numerous questions from shareholders, brokers and issuers.