Gunning for the bad guys

After a tough year, the JSE aims to push through hardhitting measures to protect the interests of shareholders

The JSE has certainly taken to heart the advice about not wasting a good crisis.

Following what must have been one of the most turbulent years in its history, the exchange has released a slew of proposed amendments to its listings requirements to address the worst of the threats to its integrity.

The amendments now up for discussion are wide-ranging and hard-hitting.

They include an attempt to make the CEO and CFO more directly accountable for the financial statements their boards sign off on, as well as proposals that will make it tougher to get onto the main board.

As expected, the JSE’S general manager of issuer regulation, Andre Visser, is naming no names and won’t link any of the proposals to specific companies.

“The proposed amendments take into account what has happened in the market over the past 18 months,” says Visser, staying well clear of any comment related to the controversial Sekunjalo group, the Steinhoff collapse,

EOH or even the property companies that destroyed so much shareholder value.

Investors and commentators, who have looked on in bemusement as one after another Steinhoff executive explained why he could not be held responsible for that company’s implosion, will welcome the proposed amendment to section 3.84 of the listings requirements.

The proposal will require the CEO and CFO to sign a “responsibility statement” after “due, careful and proper consideration” of the financial statements.

The CEO and CFO must also be satisfied with the effective design and operation of the