Shoprite hearing will eat into SRP funds
Publish date: 23 January 2007
Issue Number: 1749
Diary: Legalbrief Today
Category: Corruption
According to Business Report, what it describes as the dismal level of funding that the Securities Regulation Panel (SRP) is forced to exist on will be brought into stark relief once again with the upcoming hearing into the controversial R13bn proposed restructuring and delisting of Shoprite.
In the coming weeks, the SRP, which survived on income of R9m in financial 2006, will be forced to eat into a substantial chunk of its R2m of reserves to fund the expenses for handling the Shoprite case. The SRP is the first line of defence against what many institutional shareholders have criticised as being an oppressive proposal by Brait to deprive them of their right to be invested in a leading retail group. On February 21, the executive committee of the SRP will have a hearing to determine whether or not Shoprite chairman Christo Wiese can vote on the proposed transaction. Given the high stakes involved, it is highly likely that the decision by the SRP's executive committee will be appealed to the full panel, says the report. Full report in Business Report
