SAA may have recorded a loss of more than R9bn in the past year
Many of South Africa’s listed companies will publish their interim or annual results for the period to end June during the next few weeks. Several have already done so.
The Johannesburg Stock Exchange’s (JSE) rules require that companies publish results within three months of the end of a reporting period, and shareholders and other suppliers of financing expect it. The JSE is quick to warn when a company fails to publish its results and shareholders are quick to exit the share, while banks and other creditors will immediately start to ask hard questions.
The outcome of this rigid requirement is that companies’ operating and financial health are reported regularly and corrected when things start to go wrong. The alternative is a non-performing company that will go bankrupt when it runs out of capital. The benefit of a company structure – that of limited liability – is that shareholders are not obliged to keep on throwing money into a bottomless pit.
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