Very interesting point at the AGM today.
A bonus of 1:10 declared. You have 9 shares. Technically, you've earned 0.9 of a bonus share therefore not qualified for a bonus share.
However, the value of a share is ksh 500, which means you are entitled to ksh 450, but you get nothing, is this fair?
The JHL lawyer said that allocation of part of a share is not allowed, but what can be done is the bonus allocated but not issued can be sold on the open market and the affected shareholders compensated appropriately.
Someone suggested that since JHL only has 6,400 shareholders, assuming half are affected, the company can just round this up at the cost of only 3,200 shares at most.
Mr. Juma said the board will discuss and also consult CMA before a decision is taken.