Marshalls East Africa postponed its Annual General Meeting (AGM) once again following concerns over its audited books throwing shareholders into confusion.
The motor vehicle dealer was meant to hold it AGM last Saturday but the meeting pushed to March 31, according to a notice sent to the Nairobi Stock Exchange last Friday.
The meeting was expected to approve its 2009 annual accounts and showcase its new board and management as team.
“It was pushed back to allow the new board to appreciate and understand the audited accounts,” said Jophece Yogo, the firm’s company secretary, in an interview on Monday.
“The audited accounts were finalised by the old board. And it is important for new board to get all the accounts details clear.”
The new board and executives were tapped in December by businessman Kamlesh Pattni, who has been battling for control of the firm and executive suite with Ketan Somaia since 2006.
Mr Somaia has held sway in the auto firm for the past three years, but the new faces in Marshalls East Africa executive suite and boardroom suggests that Mr Pattni is firmly in control of the struggling auto dealer.
The postponement comes barely months after the auto dealer cancelled its 2009 AGM in September on what was attributed to the spat between Mr Pattni and Mr Somaia.
A source at the motor dealer said that the new management needs more answers from its auditors on the firm’s expenses, notably the provisions for bad debts.
This points to a mistrust between the incoming management and the outgoing team.
The firm’s audited results were prepared by PKF Kenya.
The NSE has not been pleased with the postponement of the AGM as its legal team worked on the notice for the better part of Monday morning.
The new board is headed by Fred Amayo.
Other members include James Omondi, Joachim Githinji, Peter Ndaa, Arif Hafiz, Manish Nair and Guru Govinder (the CEO).
The outgoing board members are Mr Somai, Mr Jatani, Mr Gachomo (also the managing director), Mr Muiruri, Mr Raman, Mr Kitau, Mr Nyuguto and Mr Natarayan — whom were said to be allied to Mr Somaia.
Article Courtesy of the Business Daily