This archive report was first published on 9 June 2020.
As the COVID-19 pandemic continues to spread, the Capital Markets Authority (CMA) has issued a circular to listed companies on the Nairobi Securities Exchange (NSE), requiring them to obtain a no-objection order before holding virtual Annual General Meetings (AGMs).
According to the circular, dated June 8, 2020, the companies will have to share details of how the meeting will be conducted to ensure that shareholders are involved in important decisions. The regulator has also agreed to waive the requirement for listed companies and market intermediaries to publish their financials in newspapers, allowing them to use websites and social media channels instead.
Acting Chief Executive Officer of the CMA, Wycliffe Shamiah, explained that the guidelines are in line with a High Court ruling that allowed companies listed on the NSE to hold virtual general meetings during the pandemic. The court had ruled in favor of the listed companies in March, after issuing a 14-day notice to shareholders on the intended meetings.
The CMA has also agreed to allow companies to progress key issues such as the approval and payment of dividends and the appointment of auditors, which will be ratified once AGMs are convened.
