As part of its efforts to contain the repercussions of the “Corona” crisis and to reinforce the package of initiatives it launched in order to surround its repercussions on the financial markets, the Securities and Commodities Authority sent a circular addressed to the listed joint stock companies and companies licensed by the authority as well as the registered local investment funds that informed it of several decisions that include an extension of the period of data disclosure Annual financial statements for the year 2019 and interim financial statements for the first quarter of this year.
In detail, the circular clarified that within the framework of the UAE’s keenness to apply the highest levels of safety and in line with the instructions of the Ministry of Health to prevent gatherings in the current period, and in view of what is required by the public interest, taking into account the coincidence of these obligations with the arrival of the annual general assemblies of joint-stock companies Public; a series of decisions have been adopted that include:
1- Extending the period of disclosure of the audited annual financial statements and reports for the fiscal year 2019 for an additional period not to exceed 45 days, as a maximum, ending on 14/5/2020.
Provided that the extension includes all local public joint-stock companies and foreign listed companies, as well as companies licensed by the Authority and local investment funds registered with the Authority.
2- Local public joint-stock companies and local private joint-stock companies listed in the market are obliged to observe the publication of the audited annual financial statements for the year 2019 in conjunction with the publication of the invitation to hold the company's annual general meeting.
3 - Postponing the disclosure of the quarterly financial statements ending on March 31, 2020 until the date of the scheduled disclosure for the interim financial statements ending on June 30, provided that the postponement includes all local public joint-stock companies and foreign listed companies as well as companies licensed by the authority and local investment funds registered with Commission.
4- Taking into consideration the application of the provisions of Article (14) of the Authority’s Board of Directors Decision No. (2) for the year 2001 regarding the system for trading, clearing, settlement, transfer of ownership and securities preservation related to imposing a ban on the circulation of insiders on company shares until the annual audited financial statements 2019 and financial data are disclosed Phases for the first quarter of this year.
The article states that it is prohibited for the chairman and members of the board of directors of the company whose securities are listed in the market and its general manager or any of the employees familiar with the essential information of the company to deal - on his own or for his account by others or in any other capacity for the account of others - in the securities of the company itself or the parent company or The subsidiary, sister, or ally of that company, if any of these companies listed their securities in the market, during the following periods:
(A) Ten (10) working days before the announcement of any material information, unless that information was caused by emergency or sudden events.
(B) Fifteen (15) days before the end of the quarterly, semi-annual or annual financial period, pending the disclosure of the financial statements.
The Authority noted that any provisions that contradict this circular will be suspended temporarily during the current period, whether they were stipulated in decisions issued by the Authority or the articles of association of the company until the date of June 30 of this year.
It is noteworthy that the Securities Commission has taken several initiatives during the last period to contain the repercussions of the effects of the emergence of the Corona virus, including reducing the maximum share decrease per session to 5% instead of 10%, and emphasizing preventing the short-selling mechanism in the financial markets In the country and it is not activated in these markets, and the development of a mechanism to repurchase the listed companies for their shares in a manner that facilitates controls and procedures regulating the repurchase, as well as approving the general assembly contract remotely and electronic voting on the decisions taken