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The Johannesburg Stock Exchange has fined Trustco Group Holdings, controlled by Namibian businessman Quinton van Rooyen, ZAR 5 million (about $270,000) for what it called “unacceptable” conduct tied to the company’s sale of a mining subsidiary without the required shareholder approval.
The exchange’s disciplinary committee said Trustco breached listing rules by disposing of its interest in Meya Mining without first seeking consent from shareholders. The committee said the action undermined governance standards meant to protect investors.
Exchange cites breach of market rules
In a statement on Wednesday, the JSE said the fine was meant to reinforce disclosure obligations and prevent similar violations. The exchange also ordered Trustco to issue corrective notices to the market.
“Transactions of this nature must be transparent and subject to shareholder oversight,” the JSE said. “Failure to do so erodes investor confidence and the integrity of our markets.”
Spotlight on van Rooyen’s business empire
Van Rooyen’s Trustco is one of Namibia’s most prominent business groups, with interests in insurance, finance, real estate and mining. The company has been listed on the JSE since 2009 and has occasionally clashed with regulators over reporting standards and disclosure.
Analysts said the latest censure highlights growing pressure on cross-border companies to comply with Johannesburg’s governance requirements, which are considered among the toughest in Africa.
Impact on investor confidence
Trustco has not publicly commented on the ruling. Market observers said the fine may heighten scrutiny of the group’s corporate practices and could weigh on investor sentiment unless the company moves quickly to improve compliance.
The JSE has in recent years stepped up enforcement of disclosure and governance rules to bolster trust in South Africa’s capital markets, particularly as more regional firms seek dual listings in Johannesburg.
