EAPC issued with deadline to clarify board changes, Kenya

EAPC issued with deadline to clarify board changes, Kenya
Published: 04 January 2012

Capital Market Authority has issued East African Portland Cement (EAPC) with a notice requiring the cement maker to respond to more than five offenses arising from the acrimonious change of management two weeks ago.

In a letter dated December 30 and addressed to the acting managing director Mr Peter Korir, the cement maker has seven days to respond to the authority letter.

CMA action follows the move by acting Minister for Industrialisation, Amason Kingi, to suspend Eapcc board of directors and the managing director pending investigations.

"Note that the absence of a board of director to provide strategic guidance, lead and control the company and be accountable to its shareholders, constitutes a critical shortcoming on satisfaction of the listing requirements of the company," the CMA letter read.

Nairobi Securities Exchange on Tuesday last week suspended the Eapcc shares from trading pending official relay of the changes. The failure to inform the authority and NSE is also part of the charges.