ESX Seeks Clarification on Dividend and Voting Rights Amid Secondary Market Launch

The Ethiopian Securities Exchange (ESX) has requested clarification from the Ethiopian Capital Market Authority (ECMA) regarding shareholder rights during the secondary market transition. As banks prepare for annual general meetings, uncertainty has arisen over who is entitled to dividends, meeting attendance, and voting rights when shares change ownership.

The ESX sought guidance following inquiries from shareholders, brokers, and issuers regarding specific cutoff dates for these rights. The Capital Market Authority, however, declined to intervene, maintaining that existing legal frameworks already provide sufficient direction for these transitions.