Equity Group shareholders have passed resolutions to reinforce the governance structures of the Group, diversity of the Board composition, and assure investors of dividend pay-outs. This happened during the Group’s Seventeenth Annual General Meeting.
The Shareholders voted for the Amendment of Articles 1 and 79 of the Articles of Association of the Company. These amendments are expected to reinforce its governance structure and signal the growing significance of the Group’s Foundation as the social impact investment arm and custodian of the purpose of the Group.
Listed below are the key amendments made at the AGM.
- Shareholders with more than 12.5% shareholding of the Company’s issued shares will have the ability to nominate a Director to the Board.
- Equity Group Foundation to nominate a Director to the Board.
- Up to three Executive Directors to sit on the Board.
- The Group to pay out between 30% to 50% of its Profit After Tax as dividends to shareholders.
Speaking after the AGM, Equity Group Board Chairman, Professor Isaac Macharia said, “Today, the shareholders have demonstrated their confidence in the governance of the Group, and further strengthened the structures to ensure the Board is reinforced through diversified representation for effective oversight. In so doing, the shareholders have passed a resolution enabling shareholders with more than 12.5% shareholding to participate directly by having a seat, provided the total number of Directors so nominated for appointment by shareholders shall not exceed four Directors.”
The shareholders also passed the dividend policy. The policy states that the Board should target to distribute between 30% to 50% of its profit after tax as a dividend pay-out beginning from the current financial year ending 31st December, 2021.
Also speaking at the AGM, Dr. James Mwangi, Equity Group Managing Director and CEO said, “Following the outbreak of the COVID-19 pandemic the Board, after careful consideration, took a conservative approach to preserve capital in the face of prevailing uncertainty. Consequently, the Board adopted both offensive and defensive strategies which included the withdrawal of the declared dividend pay-out for 2019.
The growth delivered through organic, merger and acquisition strategies saw the Group become the first financial institution to cross the trillion shillings rubicon in East and Central Africa. In steering its economic engine, the management and the Board adopted a twin strategy of being defensive while being offensive to adjust, adapt and take advantage of emerging opportunities.