Listed property fund ILAM Fahari I-Reit has delayed its annual general meeting by more than three months as it awaits approval of its restructuring plan by the Capital Markets Authority (CMA).
Fahari held its last shareholder meeting in April 2021 and had expected to conduct a similar event in the same month this year.
The law requires listed firms to hold an AGM 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. Fahari says it has received an exemption from the regulator with regard to the delayed meeting.
AGMs which are yearly meetings of stockholders or shareholders are crucial as they provide shareholders the opportunity to review company accounts, approve audited accounts, conduct elections, and assess fiscal records of the past year.
Failure to hold an AGM means shareholders are not able to vote on resolutions like dividend payments, changes to directorships, approval of accounts and share splits and bonus issues.
The proposals to restructure Fahari, once approved by CMA, are expected to be among the items to be put to a vote before unitholders (shareholders) at the meeting expected to be held in the near future.
The property investor, whose earnings grew in the half year to June on higher rental income, has indicated that the restructuring plan includes the sale of non-core assets.
“In line with the strategic initiative mentioned above, the Reit manager, with the approval of the trustee, will be disposing of non-core assets within the property portfolio," Fahari said recently.