Trustco beats JSE in court – for now

Trustco Group Holdings on Tuesday celebrated the High Court of South Africa granting an urgent interim interdict restraining the JSE from suspending the Namibian-based group from the stock exchange.Trustco released a media statement with the heading, “Trustco defeats JSE”.“In the aftermath of a struggle of gigantic proportions, Trustco finally saw justice prevail as its urgent interdict to restrain the JSE from suspending its listing was upheld today,” the statement read.The JSE wants to suspend Trustco because the group refuses to restate its financials. The South African bourse reviewed Trustco’s group annual financial statements for the year ending 31 March 2019, and Trustco’s interim results for the six months ending 31 August 2018.The issue revolves around the waiver of two loans by Trustco’s majority shareholder, Quinton van Rooyen – one of N$545.6 million and the other N$1 billion – as well as certain of Trustco’s Elisenheim properties.OPPOSING OPINIONSThe JSE referred the issue of the two loans and the Elisenheim properties to the Financial Reporting Investigation Panel (FRIP) - an advisory body to the JSE, consisting of a panel of IFRS experts. IFRS is short for a set of global accounting standards called the International Financial Reporting Standards.The FRIP advised the JSE that, in its view, Trustco’s reporting of the loan issue and the property issue did not comply with IFRS. Trustco maintain that it does. This resulted in a legal battle of about two years.This included Trustco applying to The Financial Services Tribunal (FST) in South Africa to dismiss the JSE restatement decision. The FST dismissed the application in November 2021.UPHILL BATTLELast December, the JSE made its initial decision to suspend the listing of Trustco’s shares. Trustco in February this year launched its second reconsideration application and interim relief application with the FST in South Africa, asking it to reconsider the JSE’s listing suspension decision and for interim relief to prevent the JSE from suspending its listing pending that reconsideration. Days later Trustco also launched an urgent application in the High Court of South Africa to avoid the JSE’s restatement decision and its listing suspension decision. Trustco and the JSE agreed to remove urgent application from the roll pending the group’s interim relief application with the FST.In July, the FST dismissed Trustco’s Tribunal interim relief application. Shortly thereafter, Trustco asked the High Court of South Africa for the same interim relief. The outcome of this application, case number 5640/2022, is still pending.The JSE wanted to suspend Trustco’s listing on 29 July. On 20 July, Trustco filed an urgent application with the High Court of South Africa for interim relief to prevent the JSE from enforcing it decision.RULINGRuling in favour of Trustco on Tuesday, Judge Nicoline Janse van Nieuwenhuizen said pending the outcome of the review application (case number 5640/2020) in the High Court, the JSE is interdicted and restrained from suspending the group’s listing on the stock exchange.The JSE is furthermore not allowed to implement, or attempt to implement, the decision that Trustco restate its annual financial statements for the year ending 31 March 2019 and in the interim results for the six months ending 30 September 2018.Janse van Nieuwenhuizen said the review application will be heard in less than a month.She further said: “The grounds of review are all deserving of a proper hearing in due cause and I am satisfied that Trustco has asserted a prima facie right to fair and just administrative action.”Trustco’s shares ended at 45c a piece on the JSE and Namibian Stock Exchange (NSX) on Tuesday. The group&#039;s shares have been falling steadily since early 2019 when they reached a high of R16 a share.

Trustco beats JSE in court – for now

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Trustco beats JSE in court – for now

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