My recent blog posting shows how the MIT CDS system has added cost and inconvenienced investors and listed companies in other regional markets in sub-Saharan Africa. We do not want the same situation in Zimbabwe. We cannot afford it at this stage.
Using my blog as a guideline I urge your company secretary or FD (or CEO, but no junior staff) to attend the meeting advertised and ask the questions I raise in my blog in addition to any additional issues you raise. Three key questions to ask:-
- have the costs of the functionality been calculated up front and who will bear those costs in the short, medium and, most importantly, long term?
- how will this impact investors positively in the short and long run?
- will the CDS be an organisation that is jointly owned by all interested stakeholders (banks, registrars, stock exchange etc.) or will it be a monopoly in competition with registrars?
Failure to add your voice to the process of a CDS system in Zimbabwe may result in inconvenience to your valuable management time, your company, your investors and your reputation, forever. Inconveniently structured systems have been forced on listed companies elsewhere and Zimbabwe has a unique opportunity to get this right. But it needs your involvement.
We have no financial interest in this project or in you attending. Our focus is investor relations. The CDS is about investor relations.