ISLAMABAD: Prime Minister Shehbaz Sharif has directed Power Division to seek opinion of Ministry of Law as to whether Federal Cabinet approval is required for nomination of GoP directors on the KE’s Board of Directors, official sources told Business Recorder.
Prime Minister has issued these directions on a summary of Power Division sent on July 25, 2022 with respect to proposed names of three Directors to represent GoP on KE Board.
K-Electric is a corporate entity registered with Securities and Exchange Commission of Pakistan (SECP). Pursuant to the Share Purchase Agreement SPA), Government of Pakistan is a minor shareholder and currently holds 24.36% shares.
The total number of KE’s Board of Directors’ is 13 of which KESC’s nominated Directors are 10 while the GoP strength is three.
Last month, K-Electric noted that their general meeting was scheduled for July 29, 2022, wherein, elections of new directors for its Board will be held. Consequently, the Company requested to share GoP’s nominations on or before July 15. 2022 as per mandatory statutory requirements of the SECP.
Owing to time constraints, Power Division made following nominations with the approval of the Federal Minister for Power Division Khurram Dastgir Khan as Director on K-Electric Board; (i) Arshad Majeed Mohmand (Additional Secretary(II);(ii) Dr. Imran Ullah Khan (Joint Secretary (CF-II), Finance Division; and (iii) Zubair Motiwala (former President KCCI)). Power Division had sought ex-post facto approval of Prime Minister on the GoP nominations pursuant to the Cabinet decision of January 4, 2002.
The sources said, Prime Minister Office has conveyed that PM has seen the summary and directed that Power Division shall seek views/ opinion of Ministry of Law & Justice as to whether the approval of Cabinet would suffice in this case as the investment in shares of K-Electric is in the name of President of Pakistan, and thereafter, re-submit the summary accordingly.
Copyright Business Recorder, 2022