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Issues at Kenol AGM
Waria
#1 Posted : Wednesday, May 20, 2009 6:27:00 PM
Rank: Member


Joined: 10/11/2007
Posts: 213
I am attending the kenol Agm tommorrow.

The board is trying to issue new 125000 shares to non exec directors in lieu of emoluments. Is this normal/legal practise. I plan to oppose.


Three directors are up for re election which may just happen given shareholder lethargy. I have planned to be proposed just to spice thing up. So all Sk please vote for the new director


Incidentally what does it take to be a director in a NSE listed company. am tired of being the small fish

Me first,U next
jammo
#2 Posted : Wednesday, May 20, 2009 6:52:00 PM
Rank: Member


Joined: 2/12/2008
Posts: 345
You can successfully oppose whatever agenda....as long as the number of votes u command r majority...one vote per one share. If the majority shareholders agree with u.... Well n good. If not..just enjoy the goody bags as u consider future as a shareholder.

As a director..again..majority shareholder...try get atleast 7%total shares issued under ur name..the BOD and management will approach u themselves.

DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
Gordon Gekko
#3 Posted : Thursday, May 21, 2009 5:13:00 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
I think you might need a little more than shares to get on the Board. I know of a shareholder of BAT who has 20% shares and can't get elected to the board!
kizee
#4 Posted : Thursday, May 21, 2009 7:14:00 AM
Rank: Member


Joined: 1/9/2008
Posts: 537
125k shares...KENOL have an ESOP policy so its a good idea...the shares will be issued in lieu of payment so should cut the companies salary costs....the cost of stock options in kenya is never expensed....its a good thing realy....for now...thnk abt opposing it befor u do..or at least ask how the plan to expense it...ask them whether theyre finance guys wud expense the cost of the options using the black and scholes or a in house propreitary model...that way the directors will all freak out and kno that uve dun ur homework

......just my kes 0.02
mozenrat
#5 Posted : Thursday, May 21, 2009 7:39:00 AM
Rank: Veteran


Joined: 5/18/2008
Posts: 796
@GG

Normally 20% would get you on the board... Unless you have formed a really antagonistic relationship with other shareholders in which case your 20% is a minority against the 80%... Also depends on the company's Memo and Articles of Association... If it only require 75% or 51% to pass resolutions,there is no incentive to allow ur friend onto the board... If I were him and was really keen to join the board,either load up on additional shares to beat the minimum required in the MA and AA or play politics and form a loose 'merger' with a shareholder with a significant holding to boost his net 'influence'.
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