- In the proposed restructuring, the government, which is the majority shareholder, will appoint five directors while the remaining shareholders will elect four directors.
- Energy Principal Secretary Alex Wachira, the company's board chair Joy Brenda Masinde and managing director Joseph Siror are expected to attend.
Image: FILE
The Kenya Power and Lighting Company board will today hold its Extraordinary General Meeting with its main agenda being to restructure the board.
In a statement, KPLC said during the meeting, the company will be seeking shareholders' approval to amend its Memorandum and Articles of Association, specifically on restructuring of the Board of Directors.
"The amendments provide a mechanism for appointing directors in a manner that proportionately reflects the Company’s shareholding structure," read the statement.
The statement said currently, the government holds 50.1 per cent of the company’s shares.
"That to provide for fair representation of both the majority and minority shareholders in the board in line with best corporate governance practices, the minimum number of directors be increased and the composition and appointment of directors to the board in the Articles of Association be amended," a notice from company secretary Imelda Bore reads.
In the proposed restructuring, the government, which is the majority shareholder, will appoint five directors while the remaining shareholders will elect four directors.
Energy Principal Secretary Alex Wachira, the company's board chair Joy Brenda Masinde and managing director Joseph Siror are expected to attend.
Also listed as part of the agenda for consideration is the variation of rights attached to ordinary shares, rotation of directors, vacation of office by a director and proposal of individuals for election to the board.
The variation of the rights to ordinary shares will be amended such that ordinary shares of nominal value Sh2.50 each shall constitute two classes of share in a manner that Class A will be ordinary shares held by shareholders of the Company other than those shares held by the Treasury while Class B are those held by the Treasury.
The holders of Class A and B shares shall have the same rights and privileges except with respect to the nomination and election of directors.
Subject to complying with the applicable provisions in the Articles, holders of Class A shares will be entitled to elect to the Board four directors while those of Class B shall be entitled to appoint to the Board the balance of the directors.
"The rights of shareholders as set out in this Article shall be effected in full no later than the Annual General Meeting to be held in 2024," the notice further states.