CAUTION URGED AHEAD OF KENYA AIRWAYS BOARD MEETING NOT TO FLOUT CAPITAL MARKET AUTHORITY RULES
(Posted 26th October 2016)
Suggestions that the Kenyan government, which holds 29.8 percent of the shares of Kenya Airways – KLM / Air France hold 26.3 percent while IFC, the International Finance Corporation hold 9.56 percent – intends to have Michael Joseph appointed as Executive Chairman of the national airline have promptly raised legal concerns as the regulations set by the Capital Market Authority do not allow for such a position.
CMA rules set clear standards of separation of powers between the board and chairman on one side and management on the other with the board setting policy and exercising oversight but not be part of the day to day management. Should the plan go ahead it will require a formal waiver from CMA and going by comments received yesterday this cannot be taken for granted.
Some directors on the board are also said to be fuming for having been kept out of the discussions to set this plan in motion with at least one, on condition of anonymity, claiming that his rights and duties as a director have been infringed and being used as a rubberstamp inspite of the stringent conditions set by CMA on directors liabilities, responsibilities and duties to the shareholders.
Also on the agenda of the Wednesday meeting are the approvals for the results of H1 of the current financial year which runs from 01st of April to 31st of March. This is taking place ahead of a planned investor briefing on Thursday morning, when all eyes will no doubt be on the composition of the head table as an indicator of the direction the company may take from there onwards.
Details of the half year results will be published here once relevant information has been received, as will any changes on the board of directors following the meeting later this morning in Nairobi.