Monday, 10 February 2014

Shareholders kick against e-financial reports


Chuks Udo Okonta

Shareholders have rejected the move by insurance companies to have details of their annual financial results in electronic devices.

President Independent Shareholders Association of Nigeria (ISAN) Sir Sunny Nwosu, who disclosed this at the annual general meeting of one of the underwriting firms, in Lagos, said the decision to forgo annual accounts in booklets negate the law, adding that until the law is amended, companies have no right to produce the accounts in electronic devices.

He noted that the production of accounts in electronic devices, would deny many shareholders the knowledge on the performance of their firms, as they do not have the gadgets to access the information in the devices.

He urged companies to respect the rights of shareholders, adding that the companies need them as investors to remain afloat.

Responding, an operator, said organisations have adopted the move to reduce the cost of printing. He noted that with the International Financial Reporting Standard (IFRS), which encourages full disclosure the cost of printing annual accounts has skyrocketed.    

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