ZSE listing rules limits Directorship posts

Published: 03 September 2013

NEW listing rules being crafted by the Zimbabwe Stock Exchange will limit the number of boards on which an individual can sit on, an industry official has said.

Securities Commission of Zimbabwe chief executive Mr Tafadzwa Chinamo in an interview yesterday said there was ongoing debate over the limit to directorships.

According to SECZ, publicly listed companies have been taking advantage of conflicting positions in legislation such as the companies Act and listing rules. Mr Chinamo said once completed the listing rules the ZSE is working on have been finalized they will provide guidelines on what listed companies should do.

As such, when the new listing rules have been completed, expected by November this year, there will be limits to board directorships of listed companies.

"You cannot have a listed company behaving like an unlisted company, there should be a difference. It is not health for an individual to sit on more than 10 boards.

"We may have to say an individual cannot sit on more than seven boards for example. We may also have to look at the number of positions one holds.

"For instance, one may not be chairman for all the companies on whose boards they sit or chair all audit committees of the boards he sits on," said Mr Chinamo.

The ZSE is in the process of consulting with stakeholders such as stock brokers, accounting firms, financial and legal advises on the new set of listing rules.

"This is a step in the right direction where we are establishing standards. It is best practice. Can someone really be effective if they sit on more than 10 boards? Most of these boards sit at almost the same time," said Mr Chinamo.
- herald