Home »Stocks and Bonds » Pakistan » KE seeks SECP nod on extended date for AGM

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  • Dec 31st, 2016
  • Comments Off on KE seeks SECP nod on extended date for AGM
K-Electric has failed to hold its annual general meeting (AGM) due to certain reservations expressed by its auditors in clearing the accounts. For the last twenty years, the power utility had been holding the AGM in October, every year but third month is near to begin since October but AGM was not called. Instead, delay is being sought formally.

"A letter has been sent to the Securities and Exchange Commission of Pakistan (SECP) requesting to grant an extended date for holding the annual general meeting," said a senior official of the K-E shares department, adding that there were some issues that needed to be sorted out prior to the AGM. He said since Chinese company was taking over the K-Electric hence the annual general meeting would be held in January 2017. The official further said the NEPRA's decision on Multi-Year Tariff (MYT) would impact the power utility and that's why the company's auditors had expressed reservations to clear the accounts.

It may be mentioned here that KE has already submitted a plea regarding determination of MYT with the National Electric Power Regulatory Authority (NEPRA), but the decision in this regard was yet to come. The official said that the company has not been able to recover outstanding dues worth millions of rupees from its consumers. On the other hand, KE's minority shareholders also voiced their reservations over the delay in calling the AGM. They expressed apprehension that around 20,000 minority shareholders including orphans and widows would be deprived of the dividend out of the KE profit. Quoting the company's report they said KE has earned Rs 28.6 billion during the 9 month of FY 2015-16 ending March 31, 2016 as against the Rs 25.6 billion during the same period of the previous year.

Copyright Business Recorder, 2016


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