Kenya Seed Company. Its former MD plans to privatise the firm. FILE
By GERALD ANDAE
Former Kenya Seed managing director will over
the next 60 days seek to privatise the firm and oust
government-appointed directors.
Nathaniel Tum says the court has allowed him to
convene a shareholders’ meeting to uphold or cancel a decision made in
2000 to offer executives of Kenya Seed a 12.8 per cent stake—which
privatised the firm.
The stake was sold to top managers, diluting the government’s shareholding from a majority of 52.8 per cent to 40 per cent.
Mr Tum’s extraordinary general meeting, which will
restrict the government’s voting rights to 40 per cent, also seeks the
replacement of directors appointed by the State including the chairman
Peter Kingori and the principal secretaries of Treasury and Agriculture
ministry, Kamau Thugge and Sicily Kariuki respectively.
The meeting and the planned elections of director
has drawn protests from the State through Agricultural Development of
Kenya (ADC), arguing that the ownership of the 12.8 per cent stake is
still being disputed.
“The court ordered that Kenya Seed Company
shareholders meeting be held within 60 days from December 5,” said Mr
Tum in a notice to the firm’s shareholders.
“The said general meeting when it is held will involve pre-2001 shareholders.”
The ADC in court documents said the notice calling
for the extraordinary general meeting is defective, arguing that it’s
only the government that can summon such a meeting, given its position
as a majority shareholder.
“If the meeting is allowed, it will lead to
confirmation of an illegality namely the privatisation of a government
parastatal,” said Kenya Seed.
The State-owned agro based firm reckons the
company’s register has not been rectified after the court annulled the
2001 privatisation.
The company’s board under Mr Tum issued nine
million new shares to the public in 2001, in a deal ADC reckons did not
meet requirements for disposal of public assets.
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