The recent Malawi Stock Exchange (MSE) listing requirement review has barred chairing of two boards and directorship in more than two boards of listed companies in a move to enhance adherence to corporate governance values.
The review has also confined the number of directors in a board for listed companies to a minimum of six and a maximum of 12. In the past, there was no limit.
Provisions of the new requirements are also barring politically exposed individuals from directorship of listed companies.
Furthermore, listed companies will be mandated to report on environmental, social and governance impacts in their firms.
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In an interview on the side-lines of a Business Breakfast recently, MSE Chief Executive Officer John Kamanga said the review has addressed issues which the local bourse believe were raised by interested parties.
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“No individual can be a director in two listed companies and then no individual can be a chairman of more than one. So, a chairman can only, be chairman for one listed company.
“In the revised listing requirements, the minimum capital requirement has been reduced to K400 million from K500 million, the profit history requirement has been reduced from three years to two years and underwriting is optional to the issuer subject to fulfilment of certain conditions,” Kamanga said.
He added that listed companies were given up to June next year to fully comply with the new rules.
The Malawi Stock Exchange has 16 listed companies but has struggled to bring new entrants on the market over the years.
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There are expectations that some companies will join the bourse recently due to its Mzinga Incubation programme.
