Suggestions that the Kenyan government intends to have Michael Joseph appointed as Executive Chairman of the national airline, have promptly raised legal concerns. Regulations set by the Capital Market Authority (CMA) do not allow for such a position.
The Kenyan government holds 29.8 percent of the shares of Kenya Airways, KLM/Air France holds 26.3 percent, and the International Finance Corporation (IFC) holds 9.56 percent.
CMA rules set clear standards of separation of powers between the board and chairman on one side and management on the other, with the board setting policy and exercising oversight but not be part of the day-to-day management. Should the plan go ahead, it will require a formal waiver from CMA, and going by comments received yesterday this cannot be taken for granted.
Some directors on the board are also said to be fuming for having been kept out of the discussions to set this plan in motion with at least one, on condition of anonymity, claiming that his rights and duties as a director have been infringed and are being used as a rubberstamp in spite of the stringent conditions set by CMA on directors’ liabilities, responsibilities, and duties to the shareholders.
Also on the agenda of the Wednesday meeting are the approvals for the results of H1 of the current financial year which runs from April 1 to March 31. This is taking place ahead of a planned investor briefing on Thursday morning, when all eyes will no doubt be on the composition of the head table as an indicator of the direction the company may take from there onwards.
