Companies face Sh1m fine as virtual AGMs deadline lapses Tuesday
Monday, June 29, 2020 0:01
By PATRICK ALUSHULA
Company shareholders at a past AGM.
FILE PHOTO | NMG
Public firms whose financial year ended last December have up to Tuesday to hold their Annual General Meetings (AGMs) or risk up to Sh1 million fines if their officials will have not sought for an extension.
Business Registration Service director-general Keneth Gathuma last month reminded companies of the deadline, asking those wishing to delay AGMs to make formal request for extension or face penalties.
“The company, and each officer of the company who is in default (of holding AGM), commit an offence and on conviction are each liable to a fine not exceeding Sh1 million,” states the Act.
Many firms have had to contend with holding virtual AGMs, a first for corporate Kenya, in the wake of extended State ban on large public gatherings in order to contain spread of Covid-19.
