CSE Council decisions of 13.6.02
During its meeting of 13 June 2002, the CSE Council examined the following matters:
Various Matters
a) Findings of the House on the CSE
The CSE Council continued its discussions on the findings of the House Watchdog and Finance Committees and decided to continue examination of the matter during a special meeting to take place the week after next. Instructions were given to CSE to codify all information concerning actions of the Council towards implementation of legislation concerning its Members, listed companies and listing of companies on the CSE.
b) Knossos Investments Ltd.
Concerning the application of Knossos Investments Ltd. for its transfer from the “Investment Companies” category to the “Other Companies” category, the CSE Council, with the agreement of the Securities & Exchange Commission, decided not to approve this. Both the Council and the SEC examined all information before them and decided that the company does not provide all the necessary guarantees for the protection of investors to enable its transfer to "Other" companies. The company will therefore continue to trade under the “Investment Companies” category and shall continue to be governed by Regulation 63 of the CSE Regulations, ensuring the protection of investors. It was also been decided to re-examine the company's request at a later date..
c) Share disbursement of listed companies
An investigation was carried out concerning the disbursement of shares of CSE listed companies as at 29 March 2002.
The investigation showed that listed companies Andreas Coullapides & Son Ltd and Christies Dairies Ltd have a problem with regard to the level of their share disbursement in accordance with Regulation 61(1)(g) of the CSE Regulations of 1995 - 2001, which provides that at least 25% of a company's share capital must be held by the public. The companies have been given three months to comply with the aforementioned Regulation. If they fail to comply, this will result in penalties.
With regard to the percentage of the share capital held by staff, the CSE Council has examined each of the cases individually to decide whether shares held by staff should be considered as publicly held.
d) Parma Brokerage Ltd
With the agreement of the SEC, the CSE Council decided to initiate disciplinary proceedings against CSE member «Parma Brokerage Ltd» following a series of violations discovered during on the spot visits at the offices of the company. The company's professional licence has been suspended since 7 February 2002, in accordance with Article 38 of the CSE legislation.
e) Spidertrade Ltd
The CSE Council decided to approve the request of CSE member Spidertrade to change category with respect to its net capital. The CSE member will join the category of brokers who are allowed to carry out transactions on behalf of third parties and manage titles and funds of customers, with a minimum net capital of CYP 100,000.
f) L.K. Globalsoft.com Ltd
It was decided to initiate the examination of the prospectus of L.K. Globalsoft.com Ltd concerning the listing of 30.000.000 B shares.
g) Striking off of members
With the agreement of the SEC, the CSE Council, decided to adopt a control procedure concerning the deletion of CSE members. The procedure mainly concerns the completion of pending obligations that CSE members have towards the CSE and their clients (investors). The procedure is to be followed by members who in future may request to be struck off from the CSE member register.
Fines
a) Towards ensuring that CSE members and listed companies apply relevant CSE legislation and regulations, the CSE Council decided to impose fines on various companies for several violations. The fines are subject to the approval of the SEC. The names of the listed companies that are affected will be announced once the SEC has given its consent.
b) Further to previous announcements, the CSE Council announced that the SEC has agreed to the imposition of a fine of CYP 500 by the CSE Council, according to Article 7 of the CSE Regulations of 2001 (Registration, Trading and Settlement of Dematerialised Securities), on Xenos Travel Ltd for breach of Regulation 4 of CSE Regulations (Registration, Trading and Settlement of Dematerialised Securities), which provides that at the time of a CSE Council decision announcing the takeover of a company's share register by the CSE, issued according to Article 10, the issuer of registered shares whom the decision concerns, is obliged to provide the CSE in electronic format and in accordance with the prescribed technical specifications, all the details of the title beneficiaries and the persons to which the shares are pledged, or any other encumbrances, as determined by the CSE at the time of announcing the decision to take over a share register.
Various Matters
a) Findings of the House on the CSE
The CSE Council continued its discussions on the findings of the House Watchdog and Finance Committees and decided to continue examination of the matter during a special meeting to take place the week after next. Instructions were given to CSE to codify all information concerning actions of the Council towards implementation of legislation concerning its Members, listed companies and listing of companies on the CSE.
b) Knossos Investments Ltd.
Concerning the application of Knossos Investments Ltd. for its transfer from the “Investment Companies” category to the “Other Companies” category, the CSE Council, with the agreement of the Securities & Exchange Commission, decided not to approve this. Both the Council and the SEC examined all information before them and decided that the company does not provide all the necessary guarantees for the protection of investors to enable its transfer to "Other" companies. The company will therefore continue to trade under the “Investment Companies” category and shall continue to be governed by Regulation 63 of the CSE Regulations, ensuring the protection of investors. It was also been decided to re-examine the company's request at a later date..
c) Share disbursement of listed companies
An investigation was carried out concerning the disbursement of shares of CSE listed companies as at 29 March 2002.
The investigation showed that listed companies Andreas Coullapides & Son Ltd and Christies Dairies Ltd have a problem with regard to the level of their share disbursement in accordance with Regulation 61(1)(g) of the CSE Regulations of 1995 - 2001, which provides that at least 25% of a company's share capital must be held by the public. The companies have been given three months to comply with the aforementioned Regulation. If they fail to comply, this will result in penalties.
With regard to the percentage of the share capital held by staff, the CSE Council has examined each of the cases individually to decide whether shares held by staff should be considered as publicly held.
d) Parma Brokerage Ltd
With the agreement of the SEC, the CSE Council decided to initiate disciplinary proceedings against CSE member «Parma Brokerage Ltd» following a series of violations discovered during on the spot visits at the offices of the company. The company's professional licence has been suspended since 7 February 2002, in accordance with Article 38 of the CSE legislation.
e) Spidertrade Ltd
The CSE Council decided to approve the request of CSE member Spidertrade to change category with respect to its net capital. The CSE member will join the category of brokers who are allowed to carry out transactions on behalf of third parties and manage titles and funds of customers, with a minimum net capital of CYP 100,000.
f) L.K. Globalsoft.com Ltd
It was decided to initiate the examination of the prospectus of L.K. Globalsoft.com Ltd concerning the listing of 30.000.000 B shares.
g) Striking off of members
With the agreement of the SEC, the CSE Council, decided to adopt a control procedure concerning the deletion of CSE members. The procedure mainly concerns the completion of pending obligations that CSE members have towards the CSE and their clients (investors). The procedure is to be followed by members who in future may request to be struck off from the CSE member register.
Fines
a) Towards ensuring that CSE members and listed companies apply relevant CSE legislation and regulations, the CSE Council decided to impose fines on various companies for several violations. The fines are subject to the approval of the SEC. The names of the listed companies that are affected will be announced once the SEC has given its consent.
b) Further to previous announcements, the CSE Council announced that the SEC has agreed to the imposition of a fine of CYP 500 by the CSE Council, according to Article 7 of the CSE Regulations of 2001 (Registration, Trading and Settlement of Dematerialised Securities), on Xenos Travel Ltd for breach of Regulation 4 of CSE Regulations (Registration, Trading and Settlement of Dematerialised Securities), which provides that at the time of a CSE Council decision announcing the takeover of a company's share register by the CSE, issued according to Article 10, the issuer of registered shares whom the decision concerns, is obliged to provide the CSE in electronic format and in accordance with the prescribed technical specifications, all the details of the title beneficiaries and the persons to which the shares are pledged, or any other encumbrances, as determined by the CSE at the time of announcing the decision to take over a share register.
