Region

Jurisdiction

Regulator

2022-06-29

Appointment of Directors of Licensed Dealing Members and Stockbrokers to Boards of Public Companies

The Securities and Exchange Commission mandates that directors and executive officers of licensed dealing members and stockbrokers must not concurrently serve on the boards of listed or unlisted public companies. Incumbent directors and executive officers currently holding dual roles are required to resign from their public company boards by July 15, 2002, and formally notify the Commission. This directive aims to prevent conflicts of interest, insider trading, and market manipulation, with the Commission empowered to sanction non-compliant licensed operators, officers, directors, and public companies.

Ghana

Securities and Exchange Commission Ghana

S E C U R I T I E S & E X C H A N G E C O M M I S S I O N C O M P L I A N C E M A N U A L FOR BROKER-DEALERS, INVESTMENT ADVISERS & REPRESENTATIVES

APPENDIX 2 - CIRCULARS

APPOINTMENT OF DIRECTORS OF LICENSED DEALING MEMBERS/STOCKBROKERS TO BOARDS OF PUBLIC COMPANIES

CIRCULAR NUMBER: SEC/CIR/OO1/2002

<u>Preamble</u> The Commission considers that it is not in the interest of the investing public for directors or executive officers of Licensed Dealing Members (LDMs) to be appointed as directors of listed and other companies as such an appointment could give rise to conflict of interest, insider trading, and other types of market manipulation. Consequently, it directs as follows:-

(i) henceforth, no director or executive officer of a licensed operator shall concurrently serve on the board of a public company (listed or unlisted) (ii) no public company shall accept the appointment of any person who is a director or executive officer of a licensed operator (iii) any director or executive officer of a licensed operator currently serving on the board of a public company (listed or unlisted) shall take steps to resign as a director of that company by the 15th of July 2002, and hereafter notify the Commission accordingly.

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S E C U R I T I E S & E X C H A N G E C O M M I S S I O N C O M P L I A N C E M A N U A L FOR BROKER-DEALERS, INVESTMENT ADVISERS & REPRESENTATIVES

<u>Sanctions</u> The Commission will sanction any licensed operator or any officer or director of such licensed operator and a public company who violates the above directives.

DISTRIBUTION 1. ALL PUBLIC COMPANIES (LISTED AND UNLISTED) 2. GHANA STOCK EXCHANGE 3. LICENSED OPERATORS

Dated May 31, 2002.

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