The Kenya Power and Lighting Company (KPLC) has called for an Extraordinary General Meeting (EGM). In a notice on Wednesday October 17, Kenya Power stated that the virtual meeting will take place on November 10.
In the EGM notice, KPLC also outlined the agenda of the meeting, which will include the company’s minority shareholders electing a board of directors.
The public notice signed by KPLC’S company secretary, Imelda Bore, and all shareholders are invited to attend the crucial meeting.
Further, in the EGM, the shareholders will be allowed to vote for four members of the board of directors.
“That to provide for fair representation of both the majority and minority shareholders in the Board in line with the best corporate government practices, the minimum number of directors be increased and the composition and appointment of directors to the board in the articles of association,” the public notice read in part.
More details on KPLC meeting
Additionally, 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.
After a cabinet approval in May 2023, Kenya Power’s minority shareholders were set to get slots in the company’s board of directors. This as KPLC continues with its planned major restructuring that is expected to be completed by the end of the year.
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Through the overhaul, the government hopes to transform Kenya Power into a commercially viable entity.
This will be achieved by delinking development initiatives, to allow the company to operate on commercial principles.
Who are the shareholders in Kenya Power and Lighting Company?
Minority shareholders in Kenya Power are the shareholders who hold class A ordinary shares. Ordinary shares, according to KPLC, have a nominal value of Kshs 2.50.
Consequently, minority shareholders hold class A ordinary shares and are entitled to elect at least four directors to the lighting company’s board of directors.
Meanwhile, the majority shareholder, i.e., the government, will appoint five directors to ensure balance in the board.
Currently, the government holds 50.09% of the company’s shares. 31,700 minority shareholders hold the rest of the shares, according to a KPLC report in June 2022.
A third of the board of directors at Kenya Power is required to retire from office during every Annual General Meeting.
The Board of directors
KPLC also specified on the eligibility for its board of directors.
In the public notice, KPLC stated that a director can be elected from the retiring board of directors.
Therefore, retiring directors can offer themselves for re-election.
Additionally, the director can be elected if they have been recommended by the board for election at the AGM.
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Currently, the KPLC board of directors includes Cabinet Secretary, National Treasury & Economic Planning Prof. Njuguna Ndung’u.
Others are Kenya Power’s Managing Director & Chief Executive Office Dr. Eng. Joseph Siror and Board chair, Joy Masinde, an advocate of the High Court of Kenya.
