Regulatory body halts KCC FC share sale
Apr 01, 2007
THE Capital Markets Authority (CMA), the sector’s regulatory body, has warned the public against purchasing shares in the Kampala City Council Football Club.
By Peter Kaujju
THE Capital Markets Authority (CMA), the sector’s regulatory body, has warned the public against purchasing shares in the Kampala City Council Football Club.
The offer was slated to start tomorrow and close on May 4.
But Japheth Katto, the CMA chief executive officer, said last week that KCC FC had not followed the legal procedure regarding the issuance of shares.
Companies intending to offer shares to public are by law required to prepare a prospectus which includes a full disclosure of the company.
“CMA wishes to inform members of the public that the intended offer of shares for sale by KCC FC has neither been submitted for approval nor approved by the CMA. Members of the public are advised that until and unless CMA has approved the offer of shares by KCC FC, anyone who purchases the shares offered does so at his or her own risk,†warned Katto.
The football club two weeks ago announced that it would offer 20 million shares at sh1,000 each to its fans, members of the public, sympathisers and all those who wish to see the club prosper.
But Katto said CMA has a duty to ensure that investors are protected and securities including shares are traded in an orderly, fair and efficient manner.
Katto explained that entities wishing to offer shares to the public should seek approval of the CMA.
THE Capital Markets Authority (CMA), the sector’s regulatory body, has warned the public against purchasing shares in the Kampala City Council Football Club.
The offer was slated to start tomorrow and close on May 4.
But Japheth Katto, the CMA chief executive officer, said last week that KCC FC had not followed the legal procedure regarding the issuance of shares.
Companies intending to offer shares to public are by law required to prepare a prospectus which includes a full disclosure of the company.
“CMA wishes to inform members of the public that the intended offer of shares for sale by KCC FC has neither been submitted for approval nor approved by the CMA. Members of the public are advised that until and unless CMA has approved the offer of shares by KCC FC, anyone who purchases the shares offered does so at his or her own risk,†warned Katto.
The football club two weeks ago announced that it would offer 20 million shares at sh1,000 each to its fans, members of the public, sympathisers and all those who wish to see the club prosper.
But Katto said CMA has a duty to ensure that investors are protected and securities including shares are traded in an orderly, fair and efficient manner.
Katto explained that entities wishing to offer shares to the public should seek approval of the CMA.