The Dyoll Group Limited was automatically delisted from the Jamaica Stock Exchange (JSE) on Monday after the company failed to rectify a violation that resulted in a suspension of its shares from trading.

The delisting, as executed by the JSE's Board of Directors, became automatic under Rule 411D of the regulations governing the public trading of shares on the exchange.

Rule 411D states that any company with shares which has been suspended from trading on the exchange for more than 180 days shall be automatically delisted.

JSE general manager, Marlene Street Forrest, explained that Dyoll Group, whose only functioning directors are its chairman - Dr Damion King and company secretary - Faye Chang-Rule, failed to comply with a requirement to submit audited financial statements, despite several meetings and discussions to facilitate this.

"The JSE had assiduously tried to work with Dyoll's Board members to facilitate the company remaining on the exchange, however the company's continued non-compliance left the board with no other option but to delist that company from the exchange," said Street Forrest in a release issued last Friday.

She pointed out that "the exchange does have some latitude and does not go the route of delisting if it is not necessary", but the continuous violations left the JSE with no option but to delist.

Breach

The trading of Dyoll Group's shares was first suspended in February 2005 for breaching rule 407, because it had failed to submit its quarterly financial statements following Hurricane Ivan in 2004 when there was a huge draw down on insurance claims.

However, trading was resumed after the unaudited financials were presented in October of that year and representation made by the reconstituted Board of Directors.

But trading was again suspended in March 2007 for violating JSE rules 404E and 408, this time for not submitting its annual reports and audited financial statements. Dyoll has since presented unaudited quarterly financials for 2007 and unaudited fourth quarter results for 2006, which showed an accumulated deficit of $65.6 million.

sabrina.gordon@gleanerjm.com