Sagarmatha continues to haggle over its non-listing
Says it is compliant with regulations, but JSE disagrees
Non-compliance with a very basic requirement of the Companies Act is an extremely serious issue for a company that is looking for billions of rand in backing from investors. For this reason it’s important that we get some clarity on whether or not Sagarmatha Technologies submitted its financial statements to the Companies and Intellectual Property Commission (CIPC) as required by section 33 of the Act.
Late on Wednesday Sagarmatha issued a statement saying the JSE had withdrawn its earlier approval of the listing because Sagarmatha had not been compliant with the requirements of the Companies Act on March 28, which was the date approval had been granted.Sagarmatha says this is not so and that on March 11 it received confirmation from the CIPC indicating it was compliant and had provided the required financial statements. Not only that but, according to Sagarmatha, CIPC confirmed that at no stage was Sagarmatha not compliant. This is a major claim to make and presumably is quite easy to confirm one way or another.
The Companies Act requires Sagarmatha, whether it’s listed or not, to submit annual returns and financial statements each year. The fact that it may or may not have been compliant with the JSE’s listing requirements at the time it made the application (and was granted approval) overshadows a possibly greater regulatory issue – has it been compliant with the Companies Act in the years since it was set up?
It’s ironic a company with such grand ambitions should have been thrown off course so early in the day by a comparatively mundane matter. If the JSE was correct in its reason for withdrawing approval then an uncomfortable spotlight will be thrown over Sagarmatha’s sponsoring brokers and other advisers.