The Capital Markets Authority's demand that public listed companies that are operating below the required capital and liquidity requirements move with speed to comply is a step in the right direction.
Even more reassuring is the demand that those in breach of the rules craft and regularly submit plans for remedial action. This later demand speaks to the regulators understanding of the rampant callousness among business leaders in our midst. Left alone to comply on the promise that they will do so almost certainly never works.
It must, however, be understood that the CMA is acting in the pursuit of the greater public good. This is because collapse of any of these companies would be bad for the shareholders, workers, suppliers and ultimately the economy. The tough compliance conditions for the companies in breach is partly meant to convey the message that the regulator is ready to act proactively in its quest to protect the interests of investors and nurture economic growth.
In the past, an apparent lax in monitoring of companies' and lack of stringent enforcement of standards have resulted in companies collapsing with billions of investor funds. It is not beyond imagination that perhaps with the latest action will prevent a possible degeneration and ultimate collapse of these firms.
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Note: The results are not exact but very close to the actual.
