This archive report was first published on 9 June 2020.
On June 9, 2020, the Capital Markets Authority (CMA) issued guidelines for listed companies to hold virtual Annual General Meetings (AGMs) in light of the COVID-19 pandemic.
The move comes after the Ministry of Health banned all public gatherings to curb the spread of the virus. The Court had previously allowed companies listed on the Nairobi Securities Exchange to hold virtual AGMs, subject to CMA approval.
According to the guidelines, companies must obtain a No Objection letter from CMA before notifying shareholders about the AGM. They must also provide details of how the meeting will be held and demonstrate how shareholders will be provided with requisite information to make informed decisions.
The Authority will process all complete applications within 14 days. Upon receipt of a No Objection, issuers are at liberty to issue a 21-day statutory notice of the intended general meeting to its shareholders.
‘‘In order to protect the rights of all shareholders, we emphasize that all shareholders should be given ample time to raise their questions and receive explanations from the Directors and/or management,’’ said Wyckliffe Shamiah, CMA Acting CEO.
The CMA has also taken measures to guarantee trading and settlement systems continue to function to support all transactions. The authority has waived the need for listed companies and market intermediaries to publish their financials in newspapers and instead use websites and social media channels.
Boards of listed firms have also been allowed to pay dividends and appoint auditors, agenda items whose determinations can later be ratified once AGMs are convened.
