Shareholders of infrastructure company Transcentury mounted a rare protest at its board of directors meeting Thursday, opposing an increase of directors’ emoluments in a year when the firm posted a Sh2.4 billion after-tax loss.
The investors at its annual general meeting (AGM) held in Nairobi questioned why directors and top executives got an increase in remuneration in 2015 compared to 2014 yet they got no dividends.
The company’s 2015 annual report shows its directors and executive officers will take home a total of Sh53 million in aggregate emoluments for 2015 compared to Sh51 million in 2014.
“If we have to cut costs everybody has to tighten their belts. Why is it that the directors’ fees keep increasing whereas you insist that we approve non-payment of dividends? You should also cut in half your fees,” shareholder Mr Sam Moturi posed to the directors.
As at December 31 TransCentury’s board consisted of the chairman Zephania Mbugua and seven non-executive directors. Mr Mbugua told the shareholders that the company “had come out of the woods.”
“We feel we have passed the tough times and we will be discussing a different scenario in our next AGM,” Mr Mbugua said.
There was anxiety as shareholders hesitated to propose and second a resolution by the company’s board to extend the non-payment of dividends to shareholders.
Source; Business Daily
