Equity Group shareholders with more than 12.5 percent shareholding will now have a chance to nominate a Director to the Board, in changes the Group made during its Seventeenth Annual General Meeting.
Equity Group Foundation will also have a seat at the Board.
The company said that the move is meant to diversify the Board composition, and also assure investors of dividend pay-out every year as long as the Company posts profits.
Speaking after the AGM, the Group Board Chairman Equity Group Holdings Plc (EGH Plc), Professor Isaac Macharia said the move is meant to instill confidence in their governance structure. “At the same time, the shareholders resolved to have up to three Executive Director’s sitting on the Board,” he added.
Professor Macharia expressed confidence in the resolutions saying that they reflected strong confidence and optimism by the shareholders over the Board and management in the governance, oversight, and management of the Group. By diversifying the representation, the Board has strengthened its oversight capacity while the inclusion of up to three executive directors creates an environment of diverse accountability with the management which enhances governance and oversight.
The Shareholders voted for the Amendment of Articles 1 and 79 of the Articles of Association of the Company thereby reinforcing its governance structure and signaling the growing significance of Equity Group Foundation as the social impact investment arm and custodian of the purpose of the Group.
The shareholders also passed the dividend policy which states that the Board should target to distribute between 30 percent to 50 percent of its profit after tax as a dividend pay-out beginning from the current financial year ending on 31st December 2021.