Disciplinary action recently taken by the aim disciplinary committee (adc) in relation to an aim company breaching rules by failing to provide its nominated adviser (nomad) with “information reasonably required to carry out the nomad’s responsibilities” will be of interest to many an aim company secretary who wishes to ensure compliance within their organization. This action will be of interest to many an aim company secretary who wishes to ensure compliance within their organization. disciplinary committee decides to privately censure and fine an aim company £75,000 for violating aim rule 31. the notice is issued by the head of aim regulation, nilam statham, and states that “pursuant to section c2.2 of the aim disciplinary procedures and appeals handbook,” which states that the decision was made by the committee “in accordance with the provisions of section c2.2 of the aim disciplinary procedures and appeals handbook.” It was also said that the specifics of the disciplinary action will be published by the London Stock Exchange Plc “on an anonymous basis” for the purpose of “emphasizing to aim firms the significance of its duty to consult with its nominated advisor according to aim regulation 31.” According to the notice, not only did the offending aim firm fail to furnish its nomad with an adequate quantity of information, but it also committed the offense of “failing to seek its nomad’s advise on risk and compliance services with the aim rules when it was acceptable to do so.” The adc held that the company should have informed its nomad and sought advice regarding various business developments, and that it was inappropriate for the company to judge whether or not the business developments were disclosable solely based on its own assessment of its obligations under the aim rules, without referring to its nomad. The adc also held that business developments “need to be shared openly.” It was not sufficient for the company to simply send agendas and minutes of board meetings to its nomad, without any context or conversation, and assume that such actions discharged the company’s aim rule 31 responsibilities. This was one of the other conclusions reached by the disciplinary committee. The nomad of the firm has to be kept up to date on changes inside the company’s operations, and the nomad should also be consulted for guidance. The notice cautioned against adopting a narrow interpretation of rule 31, stating that it “should be interpreted purposefully, requiring an aim company to provide full, timely, and regular information to its nomad, given that the fundamental purpose of aim rule 31 is to guarantee that the nomad is kept fully aware of developments and can carry out its regulatory role and responsibilities.” engage the assistance of the most competent individual available for the position of goal business secretary This type of disciplinary action, which is disclosed to the public, should serve as an important reminder to AIM-listed companies of the great value of having the appropriate company secretary to advise them on the achievement and maintenance of good governance and complete compliance with AIM rules. Get in touch with our staff right now to get more information about the advantages an aim company secretary from london registrars might provide to the running of your business.
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