Six companies scrapped from Amsterdam stock exchange for failing to appoint accountant
Euronext is delisting six smaller companies from the Amsterdam stock exchange because they missed the deadline to appoint an accountant to check their annual accounts. With this measure, the stock exchange wants to “guarantee the reputation, stability, and quality of the Dutch capital market,” Rene van Vlerken, head of listings at Euronext Amsterdam, told the Financieele Dagblad.
The companies involved are ladder producer Alumexx, holding company Lavide, digital map maker Geojunxion, real estate investor Berver Holding, sustainable investor New Sources Energy, and developer of CO2 projects DGB. They’ve had two years to appoint an accountant, and their deadline lapsed on Thursday.
Another three companies have until June to find an accountant - investment companies Value8 and MKB Nedsense and the IEX Group stock exchange platform.
Listed funds are public interest entities (PIE) and must have their annual accounts audited by a licensed accountant. Only six firms in the Netherlands have such a license - the “big four” PwC, EY, Deloitte, and KPMG, plus Mazars and BDO.
According to Peter Paul de Vries of the interest group for smaller listed companies, MidkapNL, the reason that small companies can’t meet this obligation is that there are simply no PIE-accredited accountants available. “BDO and Mazars are not taking on newly listed companies, and the big four have decided not to serve smaller companies,” De Vries told FD. He is the CEO of Value8 and MKB Nedsense and a major shareholder of IEX group, the three companies whose deadline expires in June.
Van Vlerken of Euronext Amsterdam is “well aware” of the problems surrounding the availability of certified accountants, he told FD. “Unfortunately, we are limited in our management: it is ultimately put to the accountant to decide to take on a company.” Other small listed companies, including NX Filtration and Porceleyne Fles, do have an accountant. So it’s not impossible.
The six companies will receive a message from Euronext Amsterdam about the delisting process this week. They then have two weeks to respond. Then follows the delisting process, which takes six months. If they find an accountant in that period, they can stay on the AEX.
