Equity Shareholders Resolve to Reinforce Governance

Equity Shareholders Resolve to Reinforce Governance

Equity Group Holdings Plc shareholders have today, during its Seventeenth Annual General Meeting passed resolutions that will reinforce the governance structures of the Group, continue to diversify the Board composition, and also assure investors of dividend pay-out every year as long as the Company posts profits.

The Shareholders voted for the Amendment of Articles 1 and 79 of the Articles of Association of the Company thereby reinforcing its governance structure and signaling the growing significance of Equity Group Foundation as the social impact investment arm and custodian of the purpose of the Group. Shareholders with more than 12.5% shareholding of the Company’s issued shares will have the ability to nominate a Director to the Board.

Equity Group Foundation to nominate a Director to the Board.

Up to three Executive Directors to sit on the Board.

The Group to pay out between 30% to 50% of its Profit After Tax as dividends to shareholders.

Speaking after the AGM, the Group Board Chairman Equity Group Holdings Plc (EGH Plc), Professor Isaac Macharia said, “Today, the shareholders have demonstrated their confidence in the governance of the Group, and further strengthened the structures to ensure the Board is reinforced through diversified representation for effective oversight.

In so doing, the shareholders have passed a resolution enabling shareholders with more than 12.5% shareholding to participate directly by having a seat, provided the total number of Directors so nominated for appointment by shareholders shall not exceed four Directors.”

The Chairman further added, “The shareholders have also resolved to have a Board seat for the Equity Group Foundation demonstrating the importance of the Foundation in the overall growth and development the Group’s twin-engine business model.

At the same time, the shareholders resolved to have up to three Executive Directors sitting on the Board.”

Professor Macharia expressed confidence in the resolutions saying that they reflected strong confidence and optimism by the shareholders over the Board and management in the governance, oversight, and management of the Group.

By diversifying the representation, the Board has strengthened its oversight capacity while the inclusion of up to three executive directors creates an environment of diverse accountability with the management which enhances governance and oversight.The shareholders also passed the dividend policy which states that the Board should target to distribute between 30% to 50% of its profit after tax as a dividend pay-out beginning from the current financial year ending on 31 st December 2021.Dr. James Mwangi, Equity Group […]

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