Kenya Power shareholders have made a resounding decision in support of amendments to the Company's Memorandum and Articles of Association during an Extraordinary General Meeting (EGM) held today in Nairobi.
According to a statement by the company, the amendments, primarily aimed at restructuring the Board of Directors, were met with enthusiasm as they intend to uphold the rights of minority shareholders, aligning with robust corporate governance practices and the national growth agenda set by the Government.
"Kenya Power shareholders have approved amendments to the Company's Memorandum and Articles of Association during an Extraordinary General Meeting (EGM) held today," the statement read.
"The amendments, key among them the restructuring of the Board of Directors, were proposed to safeguard the interests of minority shareholders, in line with good corporate governance practices and the Government's transformative growth agenda."
The crux of these amendments lies in the reformation of the Board to ensure a more equitable representation, a move pivotal in maintaining fairness amidst the diversified shareholder base.
Specifically, the amendment proposes a significant shift in the process of director appointments, intending to mirror the Company's shareholding structure accurately.
With the Government presently holding 50.09 per cent of the Company's shares, the revised structure dictates that the Government, as the Majority Shareholder, will now nominate five directors.
This decision heralds a departure from the existing norm, allowing the remaining shareholders the privilege to elect four directors, thereby fostering a more balanced and inclusive decision-making process.
These pivotal changes stand as a testament to the Government's unwavering commitment to transforming Kenya Power into a commercially viable entity.
By uncoupling developmental initiatives from the operational framework, the Company aims to adopt a more commercially attuned approach, one that resonates with the broader landscape of sound business principles.
The amendments not only reflect a strategic shift but also mark a milestone in the pursuit of operational transformation.
The implementation of these changes will fundamentally redefine the dynamics within the Company, fostering a climate of fair representation and diversified decision-making.
"The restructuring of the Board is a crucial step towards ensuring a more inclusive and fair representation of all shareholders in the decision-making process," stated an official spokesperson of Kenya Power.
The alterations align directly with the nation's ambitious goals of fostering a transformed, commercially oriented Kenya Power, thus embodying a progressive leap towards a more robust and equitable corporate landscape.