Pretoria to pay for director training

Johannesburg , 2 July 2003

Africa's first alternative investment exchange for small and medium size companies will have a strong focus on corporate governance and director education.

To be known simply as AltX the new exchange will open in October this year, and will adopt a more lenient version of the Johannesburg Stock Exchange's tougher new listing rules due to come into force in the near future.

Those appointed as directors of AltX companies will have to attend a full-time four-day induction programme arranged by the South African Institute of Directors and the Wits Business School. This will be funded for three years by the Mbeke government, whose department of trade and industry is a major partner in the initiative, which, it is hoped, will promote black economic empowerment.

Noah Greenwell, appointed manager AltX, says that the exchange will be proactive in searching for suitable unlisted companies, and then informing them of corporate governance responsibilities. These will include detailed disclosure requirements, but companies will not be co mpelled to publish financial reports to the media, only encouraged to do so.

The new listing requirements on the senior exchange, the JSE, are expected to include a new definition of ¢â‚¬Ëœindependent directors' and will exclude immediate family members of present or past directors, retired or past executives, and those considered to be representative of any shareholder who has the ability to influence the board.

Another important and interesting new rule will be a requirement that a trading statement must be published as soon as a company is aware that its financial results will be materially different from market expectations.