By Tom Winnifrith, The Sheriff of AIM | Thursday 16 March 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Coal of Africa (CZA) has suspended its COO Mr Michael Jakobus Bronn after noting the judgement and fine against him for " the contravention of the Section 78 (1) (a) of the Financial Markets Act, 19 of 2012." Coal says that it is " in the process of reviewing the FSB findings, the details of which have been made public on 15 March 2017. The Company has placed Mr Brönn on suspension whilst the Company completes its internal review process." So what is Section 78? Let me enlighten you.
It is part of the South African Financial Services Board ( its FCA) rules of conduct which you can see here.
The relevant paragraph is on page 122 and reads:
78. (1) (a) An insider who knows that he or she has inside information and who deals directly or indirectly or through an agent for his or her own account in the securities listed on a regulated market to which the inside information relates or which are likely to be affected by it, commits an offence.
So Bronn is a convicted insider dealer. Just why exactly is this not a firing offence? Sod suspension: sack the bastard now, without compensation, for gross misconduct. What is not clear about that?
How on earth can Bronn be a fit and proper person to be a director of a listed company? Okay I know this is AIM but surely even on the Casino insider dealing is not considered acceptable, or is it?
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