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Tag: Capital Markets Authority (CMA)
CMA initially suspended CMC shares for seven trading days beginning September 16, eight days after lead shareholder Peter Muthoka was replaced as chairman. The CMA had argued that the suspension was meant to sustain investor confidence in the capital markets and give the CMC Holdings’ directors an opportunity to resolve the outstanding issues.
Kung’u Gatabaki, who chairs the board of the Capital Markets Authority (CMA), has disowned the reconstituted team, arguing that his directive to have five CMC nominees sit in the new board was to be executed by consensus – not through forceful expulsion based on boardroom voting power.
The capital markets regulator on Monday stoked the management flames at motor dealer CMC Holdings with a fresh order seeking to send the entire board packing and replace it with a new one. CMA said it would appoint a caretaker board to replace the warring directors – a move that would effectively throw out the key protagonists in the four-month long boardroom battle that began in September.
Capital Markets Authority (CMA) is expected to meet Cooper Motors Corporation (CMC) management on Monday to discuss the contents of a forensic audit initiated by the Regulator to determine whether there was a breach of corporate governance standards in the troubled motor company.
Motor dealer CMC Holdings lost more than Sh1.1 billion in inflated charges paid over five years to a transport and logistics firm owned by CMC board member and former chairman Peter Muthoka, a forensic audit by Price water house Coopers (PwC) has found.
The Capital Markets Authority has extended the suspension of CMC Holdings Limited from trading at the Nairobi Securities Exchange (NSE) for another 21 days. The extension takes effect on February 3 when the initial 90-day suspension expires. While allowing the board of directors an opportunity to resolve disagreements at CMC, the Capital Markets Authority intervened by suspending trading of the company’s shares on the NSE to enable the investing public an opportunity to get a true picture of affairs at the auto-dealer.
The suspension of CMC shares from trading at the Nairobi Securities Exchange (NSE) is set to be extended beyond the January 26 deadline after the regulator announced that findings of an ongoing forensic audit will be released in the first week of February.