The JSE yesterday issued a censure of AYO director, Khalid Abdulla, despite a forthcoming hearing, this after the South Gauteng High Court ruled in an urgent interdict brought by Abdulla, in which it suspended a proposed fine of R2 million.
In a statement issued yesterday, the JSE said: “We await the outcome of Mr Abdulla's Reconsideration Application, which the JSE has opposed, and which will be heard by the Financial Services Tribunal (FST) on September 15, 2023.”
Abdulla was claimed by the JSE to have breached AYO’s listing requirements regarding related party transactions and for his role in allegedly instructing adjustments to AYO’s 2018 interim financial statements.
When approached for comment, AYO said it was awaiting the outcome of the FST hearing on September 15.
Abdulla was appointed as a non-executive director of AYO since its listing on December 21, 2017 until August 2018 - he currently serves as the executive deputy chairman.
On August 27, 2020, the JSE imposed a censure and financial penalties of R6.5 million against AYO as a result of transgressions of the listings requirements.
The JSE alleged that its further investigations found that funds invested by AYO after its listing, in terms of performance management agreements, were not invested according to the terms of the agreements and were in contravention of listing requirements, particularly as the investment was made to a related party.
The JSE claimed Abdulla had facilitated the transactions and had caused AYO to be in breach of listing regulations. Also the market was not informed of the transactions, shareholder approval was not obtained or confirmation was not provided to shareholders that the terms were fair, the JSE said.
The JSE had imposed a public censure and a R2 million fine on Abdulla for these transgressions, but in April the FST suspended the financial penalty imposed by the JSE on Abdulla, and dismissed Abdulla's application for the suspension of the public censure. Abdulla subsequently made an urgent application to the High Court and approached the FST for a reconsideration.
BUSINESS REPORT