#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

@chiaroscuro, si kweli!

Partiality of CMA in this matter makes their statement of 'engaging further with key shareholders of CMC' more political than the newspaper report.

Mandate granted to CMA in law touches on licensing, supervision, compliance, regulating offers, and public awareness. In my opinion, they cannot abrogate rights of shareholders, or assume dictate of a legal court for that matter.

But heck that's just me - let it unfold.

Has anyone had sight of the PWC report ? Are the terms of reference similar to that of the South African firm ?

Oooooppsss...

1. Regulator changes the tune on CMC board ouster noting appointment of new board has to respect current court decision http://www.businessdailyafrica....1/-/a4tl1iz/-/index.html

2. PWC says it did not compile its audit report according to generally accepted auditing standards, and terms of reference were to focus on Andy's contracts only


Yes, I’d give the Devil benefit of law, for my own safety’s sake. Sir Thomas Moore