Property fund ILAM Fahari I-Reit will end the year without holding an annual general meeting due to continued delays in approval of its proposal to restructure business.
Fahari Fund which is listed at the Nairobi Securities Exchange (NSE) last held its AGM on April 16, 2021 but this year’s meeting was delayed beyond April as it had expected to hold the gathering later in the year.
The AGM is now expected to be held next year since it will have to notify investors at least 21 days in advance. The fund is seeking an approval of its proposed operational restructuring from the Capital Markets Authority (CMA).
Details of the proposals being fronted by the manager of the fund –ICEA Lion Asset Management Limited— are yet to be disclosed.
Fahari owns multiple properties for rental income through various investment vehicles but it had previously considered different options to lower its expenses including raising more capital to acquire more properties and selling off underperforming assets.
The fund had received regulatory approval to delay its AGM. The laws stipulates that all listed firms must hold an annual meeting six months after the end of their financial year or within 15 months from the last meeting.
Fahari has December as its year-end to hold the AGM where shareholders can review company accounts, approve audited accounts, conduct elections, and assess fiscal records.
But failing to hold an AGM means that shareholders will not have the opportunity to vote on resolutions like the proposed restructuring, changes on management, approval of accounts and remuneration of auditors.
Once its proposal to restructure business is approved by the CMA, it will be among the items to be put to a vote before shareholders when the delayed AGM is held.
The fund’s delayed AGM is among the matters in the capital markets stuck in a regulatory and legal impasse. Other stalled matters the buyout of BOC Kenya by Carbacid Investments Plc after the proposed deal was challenged at the Capital Markets Tribunal.
