Speaking to the Guardian, the acting Chief Executive Officer of the The Bahamas International Stock Exchange (BISX), Mr Keith Davies, acknowledged that there is a significant disparity in shareholder power between larger and smaller shareholders, which he explained is due in part to the relative lack of trading activity on the exchange.
“I think the average amount of shares that are issued to the public are around 33 per cent. Your voice is very small,” he announced, continuing:
“I am potentially seeking to introduce into the rules, that any company whose securities are listed…who does not issue in a timely fashion material financial disclosure be suspended from trading.”
The BISX chief explained that any unethical advertising practices undertaken by a broker would necessitate the submission of a report by the BISX to the Securities Commission, which would then decide the appropriate punishment. However, he noted that the exchange has yet to deal with any cases of such unethical behaviour, explaining that client/broker disputes are normally resolved before action needs to be taken.
However, Mr Davies pointed out that: “When you have a requirement, there must be equal penalties for non-compliance. You have to have strong penalties to make someone do something.”
By Amanda Banks, Tax-News.com
