Capital Markets Authority (CMA) has send two executive and five non- executive members of CMC Holdings (CMCH) Limited packing.
The officers were indicted in the findings of the investigations by Webber Wentzel and the CMA team as having flouted the capital markets legal and regulatory requirements in the matter of CMCH.
The executive members mentioned in the report are Mr. Martin Forster and Mr. Sobakchand Shah while the non-executive directors include Mr. Charles Njonjo, Mr. Peter Muthoka, Mr. Jeremiah Kiereini, Mr. Richard Kemoli and Mr. Andrew Hamilton.
The CMA Board disqualified them from appointment as directors of any listed company or licensed or approved person, including a securities exchange in the capital markets in Kenya under Section 25A (1)(c)(i) of the Act.
Facing the cut also is Mr. Joseph Kivai but according to Board Chairman Mr Kungu Gatabaki, the disqualification is with respect to his directorship at CMC Holdings Limited only.
According to the Board, the actions were delayed due to myriad of court cases with regard to CMCH that were filed in court and in particular, the suits by Mr. Peter Muthoka (former Chairman of CMCH Board) which questioned the powers of the Authority to appoint an interim board and also a contempt application by Andy Forwarders Limited against CMA not to interfere with the composition of the Board of CMCH Holdings.
With the Board allowing all people mentioned in the investigations an opportunity to be heard by an ad hoc committee according to section 26 of the Capital Markets Act, Peter Muthoka, Richard Kemoli, Joseph Kivai and Jeremiah Kiereini failed to appear before the committee.
The CMA’s ad hoc committee which was led by Rtd Justice Aaron Ringera, ommittee was appointed under Section 14 (1) of the Capital Markets Act. According to Mr. Gatabaki, most of the people who appeared before the committee had pleaded ignorance of their duties as directors of a listed company.
He added that the Board had taken long term reform measures meant to streamline the implementation of capital markets in Kenya such as training in corporate governance every three years as well as producing evidence of attendance to recommended corporate governance workshops.
Besides, the Board set 75 years as the maximum age for a person to serve as director of a listed company.
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