The Capital Markets Authority (CMA) has begun hearing the case against former Imperial Bank Ltd (IBL) directors for their failure to disclose key information while floating the lender’s Sh2 billion bond.
The lender is still under receivership. In a statement on Wednesday, CMA said the bank's bosses misled the regulator and investors, before the 2015 issuance of its corporate bond that was set to mature in December 2020.
“The CMA commenced its enforcement proceedings against former board members of IBL on their failure to provide oversight in the preparation, approval and publication of the Information Memorandum for a Sh2 billion medium-term note,” said the CMA.
According to CMA, the directors failed to report financial statements and fraud to CMA and the investing public.
According to the CMA, IBL applied for the issuance of a Sh2 billion medium-term note on April 30, which was approved by the regulator on August 12.
Last December the Supreme Court ruled the CMA can proceed with the enforcement action against the nine directors.