Huge R10m trade breach fines reduced
Alt-X listed telecommunications company, Huge Group’s CEO James Herbst, along with former chairman Anton Potgieter, have had their fines reduced for trading breaches on the JSE.
In November 2009, the JSE found that Huge’s acquisition of 80,445 single stock future (SSF) positions constituted a repurchase of the company’s securities and ruled that the transaction was concluded with related parties.
The JSE also ruled that the acquisition was in contravention of section 85 of the Companies Act and fined the directors R5 million each.
The directors at Huge lodged an appeal in terms of the provisions of the Securities Services Act to the Appeal Board of the Financial Services Board against the findings of the JSE, and on Monday (09 July) the JSE said: “The penalty of R5 million imposed on each appellant is set aside and substituted, therefore, is a fine on each appellant of R3 million.”
Pursuant to hearing of the appeal, the Appeal Board ordered on 3 July that Huge acted contrary to the provisions of section 85 of the Companies Act; and that Huge and the appellants breached section 5.69 of the Listings Requirements by way of having Huge effected a specific repurchase of its securities from related parties.
Huge has been ordered to pay the costs of the application to supplement the grounds of appeal, while the JSE has been ordered to pay the wasted costs of the hearing on 3 March 2011.
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