The Capital Markets Authority (CMA) has been barred from directing or recommending selection of directors at publicly listed firms, weakening the regulator’s powers to enforce corporate governance.
In a case brought by Limuru Tea Plc, the Capital Markets Tribunal ruled that the appointment and removal of directors remain the exclusive preserve of shareholders, who exercise this authority during annual general meetings (AGMs), effectively clipping the CMA’s influence on the internal affairs of listed firms.
