SWX Swiss Exchange fines Ci Com SA. The Disciplinary Commission of the SWX Swiss Exchange has discovered that Ci Com SA has violated
various provisions of the Listing Rules. In its annual report for 2004, certain information pertaining to corporate governance was not
published in accordance with the relevant provisions, and real-estate valuations were not carried out in accordance with Swiss GAAP
ARR. Moreover, Ci Com SA failed to meet the applicable publication deadlines for its annual reports for 2004 and 2005 and to provide
on its website a service notifying investors of potentially price-sensitive facts. The Disciplinary Commission has therefore imposed
a fine of CHF 25,000 and decreed that the sanction should be published.
The SWX Swiss Exchange (SWX) requireslisted issuers to publish their financial reports before the applicable deadlines and in accordance
with the Listing Rules and relevant directives.Financial reporting must be carried out pursuant to accepted accounting standards.
Information relating to corporate governance must be published pursuant to the Directive on Information Relating to Corporate Governance
(DCG) and its Annex.
Ci Com SA failed to publish its annual reports before the applicable deadlines (end of June 2005 for the annual report for 2004, end
of April 2006 for the annual report for 2005). In its annual report for 2004, the company failed to disclose certain information relating
to corporate governance. Information relating to the members of the board of directors (Points 3.1a) and 3.2 RLCG), the principles of
the election procedure (Point 3.4.1), its work methods (Point 3.5.3) and share ownership of persons closely linked to a member of the
board of directors (Point 5.5), as well as an overview of the options allotted to the members of the management board and the board of
directors (Point 5.6), were not properly disclosed.
Ci Com SA has chosen Swiss GAAP ARR (ARR) as its accounting standard. For 2004, it valued the real estate owned by one of its subsidiaries
atpurchase price and declined to recognise depreciation. ARR allows depreciation to be waived only if the real estate is valued at market
value (ARR 18/14). By valuing the real estate owned by one of its subsidiaries at purchase price and declining to recognise depreciation,
the company violated ARR (ARR 18/8 und 18/14).
The SWX sanctions issuers who fail to take all necessary and reasonable organisational measures to prevent violation of the Listing Rules.
Sanctions may include fines of up to CHF 200,000. Ci Com SA has already been sanctioned for violating the Listing Rules in 2002 and 2003.
The new violations are not equally grave. In view of all aspects of the case in question and the repeated violation of applicable rules,
a fine in the amount of CHF 25,000 has been imposed.
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