Ousting of nominee chairman of KSE board

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has made a move to protect its nominated chairman of the KSE board, as the commission has expressed concern over the convention of extraordinary general meeting (EOGM) on November 4 with a sole agenda of amending Articles of Association and oust SECP-nominated director as chairman of the board.

However, the KSE directors and members confirmed that the extraordinary general meeting would be held as per the schedule and with the same agenda.


The SECP in a letter to the KSE board noted that the statement annexed to the notice of EOGM does not set out material facts, concerning special business to be transacted at the proposed EOGM.

The EOGM has been called by the KSE board to pass a resolution to amend the Articles of Association of KSE.

According to the commission, the statement annexed with the notice of the meeting fails to disclose to the members that the proposed resolution is in derogation of regulations of the Constitution of the Governing of Board of Directors of KSE, 2005 and is, therefore, illegal.

The SECP in its letter has also referred to a copy of the letter dated November 1 signed by 21 KSE members and addressed to the board, requesting deferment of the EOGM.

Sources said that the EOGM would seek a resolution to amend the Articles of Association of the KSE to oust a nominee director to be the chairman of the KSE board and expressed the hope that the resolution would be passed.

It is learnt that a 75 percent majority would be required to pass a resolution, seeking amendments in the Articles of Association.

Moreover, the commission has also taken notice of alleged disgraceful conduct of some KSE members at the annual general meeting held on October 28.

After the annual general meeting that lashed out at the outgoing Managing Director Adnan Afridi and non-member director Farrukh Junaidi for lavish expenses, pays and perks to the management, the non-member directors approached the SECP and alleged dishonourable and disgraceful conduct of some KSE members, including a director.

The SECP asked the KSE board to arrange a formal apology by the relevant members to the KSE non-member directors.