A warning has been issued by Pakistan Stock Exchange to the national air carrier of the country PIA of suspending the share trading from 22nd May 2019.
It has been stated by PSX that PIA has not been able to hold its Annual General Meeting (AGM) for the year that ended on 31st December 2017. Furthermore, the Annual General Meeting deadline for the year that ended on 31st December 2018 has also expired.
The meeting should have been held within 4 months or 120 days from the closure date. The deadline was 30th April 2019.
PSX said that the non-holding of AGM and due to the non-submission of the yearly audited documents for two consecutive years has resulted in the trading suspension of its shares.
The notification stated, “If such company fails to submit its annual accounts for two consecutive years, trading in shares of the company shall be suspended immediately by the exchange and the company shall be given 90 days to rectify the non-compliance, failing which the exchange shall initiate further actions against the company.”
Adding, “Failing which trading in its (PIA) shares shall be suspended w.e.f (with effect from) May 22, 2019. Upon failure of the company to rectify its default within seven trading days i.e. by Friday, May 10, 2019, trading in the shares of the company shall be converted to SPOT (T + 0) settlement for the next seven days i.e. till Tuesday, May 21, 2019.”
PIA was advised by stock exchange to correct its defaults by 21st May, 2019 in order to avoid instant suspension.