CMC Shareholders demand AGM, Full year accounts

Minority shareholders at CMC Holdings Ltd will on Friday, July 27th 2012 hold a press conference to demand a date for the overdue Annual General Meeting. As a statutory requirement according to the Company Act, CMC which last held its AGM on March 4th 2011 should have already held its AGM in March 2012 and published its full year financial results.

Minority shareholders of the motor company say they have been kept in the dark ever since the crisis surrounding several shareholders over fraudulent deals erupted early this year. Financial information must be communicated to shareholders who must congregate every year at an annual general meeting which is long overdue at this date.

CMC’s annual meeting has been delayed for several months, with the result that some 14,743 minority shareholders have been kept in the dark about the major changes that have taken place in the company since the last such meeting. Combined, the stake of the minority shareholders comes to 37 per cent. The rest is in the hands of the top 10 shareholders.

The auto dealer last September started experiencing a vicious boardroom war and claims of fraud which allegedly cost shareholders billions of shillings. This resulted to Capital Markets Authority suspending CMCs share trading at the Nairobi Securities Exchange. The regulator also launched an investigation into the company undertakings after a row over the legality of a boardroom coup which saw the ouster of Peter Muthoka as chairman emerged.

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