This archive report was first published on 10 June 2020.
June 10, 2020 - The Capital Markets Authority (CMA) has announced that it will take over 40 days to approve online annual general meetings (AGMs) for listed companies.
According to Acting CEO Wycliffe Shamiah, the approval process will involve a two-week review by the CMA, followed by a 21-day statutory notice to shareholders.
"In order to protect the rights of all shareholders, the CMA has emphasised that all shareholders should be given ample time to raise their questions and receive explanations from the directors and/or management," Shamiah said.
The CMA had initially frozen shareholder meetings due to the COVID-19 pandemic, but later allowed companies to hold virtual meetings where their rules permitted. However, a court ruling in the case of ScanGroup #ticker:SCAN, which was unable to proceed with the sale of part of its business for Sh5 billion, allowed all listed firms to hold virtual meetings even where internal rules do not allow.
