Fresh Row as Petroleum Workers Oppose KPC Director Recruitment

Jukwaa

🇰🇪 Breaking It Down

In a letter dated May 15, the union raised questions about the legitimacy of the board overseeing the recruitment, given that the government recently sold most of its stake in KPC.

KPOWU claims that the current board may not be properly constituted following changes to the company's shareholding structure.

According to KPOWU, the recent partial sale of the government's stake in the company should trigger a full board reconstitution before any further action is taken.

📌 What You Need to Know

The union argues that proceeding with the MD's recruitment before regularising the governance structure could undermine transparency, accountability, and compliance with corporate governance standards.

"We write to formally petition the Capital Markets Authority regarding serious corporate governance concerns arising from the actions of the current Board of Directors of Kenya Pipeline Company PLC," the union stated.

"Proceeding with the recruitment of a Managing Director prior to proper board reconstitution undermines transparency, accountability, legitimacy, and fiduciary responsibility expected under accepted corporate governance standards," it added.

KPOWU further argues that the board's authority to undertake the recruitment process may be in question, citing provisions of the Companies Act, 2015, CMA corporate governance guidelines, and the company's articles of association.

"The company recently transitioned from a public company to a private company following changes in its shareholding structure. Consequent to this transition, it is our understanding that the governance framework and board composition ought to be reconstituted to accurately reflect the current ownership and shareholder interests in accordance with the Companies Act, 2015.

Their petition comes days after KPC announced the exit of two board member s, Sharon Irungu-Asiyo and Mohamed Birik Mohamed.

📰 Source: Kenyans.co.ke

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