Kenya Power and Lightning Company (KPLC) shareholders have approved amendments to the Company’s Memorandum and Articles of Association.
In a statement on Friday, November 10 after an extraordinary general meeting, KPLC stated that the amendments were proposed to safeguard the interests of the minority shareholders in the company.
“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,” read the statement in part.
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The amendments will see minority stakeholders electing four board directors to the company while the government which is the largest shareholder will appoint five board directors.
“The amendments will provide a mechanism for appointing Directors to fairly reflect the Company's shareholding structure. Currently, the Government holds 50.09% of the Company's shares. In line with the approved amendments, the Government, who is the Majority Shareholder, will appoint five directors while the remaining shareholders will elect four directors,” the company stated.
Kenya Power further said the amendments align with the Kenya kwanza government’s commitment to enhance the entity’s commercial viability.
“The changes are aligned to the Government's commitment to transform Kenya Power into a commercially viable entity, by delinking development initiatives, to allow the Company to operate on commercial principles,” Kenya Power added.
