Listed property fund ILAM Fahari I-Reit is set to close the year without holding an annual general meeting, indicating continued delays in approval of its proposed business restructuring.
The Nairobi Securities Exchange-listed fund last held its AGM on April 16, 2021. This year’s meeting was delayed beyond April and Fahari had expected to hold the gathering later in the year.
The meeting is now expected to be held next year since the fund will need to give investors notice at least 21 days in advance.
These included raising additional capital to acquire more properties. Others were the sale of certain underperforming assets.
Fahari had received regulatory approval to delay its AGM.
The law requires listed firms to hold an annual meeting six months after the end of their financial year or within 15 months from the last meeting.
The property fund has December as its year-end. At the AGMs, shareholders find the opportunity to review company accounts, approve audited accounts, conduct elections, and assess fiscal records.
Failure to hold an AGM means shareholders are not able to vote on resolutions like the proposed restructuring, changes to directorships, approval of accounts and remuneration of auditors.
The proposal to restructure Fahari, once approved by the CMA, is expected to be among the items to be put to a vote before unitholders (shareholders) at the delayed shareholder meeting.
Fahari’s delayed AGM is among the matters in the capital markets stuck in a regulatory and legal deadlock.
Others include the stalled buyout of BOC Kenya by Carbacid Investments Plc after the proposed deal was challenged at the Capital Markets Tribunal.
BOC’s minority shareholder Ngugi Kiuna filed the application, saying the buyout price of Sh63.5 per share undervalues the company.
The tribunal has not been able to meet due to vacancies at the organisation.
