- During an Extraordinary General Meeting (EGM) on November 10, the shareholders approved the amendments.
- Key among the amendments is the restructuring of the board of directors to reflect the company's shareholding structure.
Image: FILE
Kenya Power and Lighting Company (KPLC) has picked an international consultancy firm to lead the process of onboarding independent directors to the board.
In a statement on Thursday, the Company said Deloitte & Touche LLP will now oversee the nomination and election of the independent directors.
According to the company, this is aimed at ensuring the process is above board.
"This will give assurance on the integrity of the process and provide the required support to the board of directors," the statement reads in part.
The move follows the recent amendments to the Company's Articles of Association.
During an Extraordinary General Meeting (EGM) on November 10, the shareholders approved the amendments, key among them the restructuring of the board of directors to reflect the company's shareholding structure.
The changes will see four directors being elected by private shareholders who are minority while the other five directors being appointed by the Treasury as the majority shareholder.
Until the changes were effected, the government held 50.1 per cent of the company’s shares.
The changes in the structure of the board of directors, KPLC said, are meant to safeguard the interests of both minority and majority shareholders, in line with good corporate governance practices.
The changes, it added, are also aligned to the government's commitment to transform Kenya Power into a commercially viable entity, by delinking development initiatives, to allow the Company to operate on commercial principles.
During the EGM, 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 was also adopted.
The variation of the rights to ordinary shares was 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 will have the same rights and privileges except with respect to the nomination and election of directors.