#CMA to appoint a third of directors - including chairman - to interim board of auto dealer #CMC Holdings. MD and finance director to remain
CapitalFM_kenya

News just in is Capital Markets Authority, in a first from the recent past, is appointing a caretaker board for CMC.

Will majority shareholder take it lying down?
Are investors in CMC protected and happy?
What direction if it starts trading?

Gakiavi type?

“The move is in total contempt of court following the orders that CMA sought and was granted on November 16, 2011,” said Fred Ojiambo of Kaplan & Stratton, the law firm that represents Mr Peter Muthoka, the lead shareholder at CMC in the suit against CMA.

Mr Ojiambo said the court had on November 16 issued two orders in response to CMA’s prayers -- that the CMC board could not be altered until the matter before court is heard and determined besides restraining the petitioner (Mr Muthoka) from holding a special general meeting.

“This means the composition of the CMC board cannot be changed until the case has been decided. CMA cannot act in breach of orders it sought and obtained from court,” he said.

http://www.businessdailyafrica....0/-/11apvlu/-/index.html