GoP KE board directors: PM asks PD to seek Law Ministry’s Opinion
Prime Minister Shehbaz Sharif has asked the Power Division to seek the legal opinion of the Law Ministry to nominate government directors to the KE board directors.
Prime Minister has directed the Power division to inquire with the Ministry of Law as to whether Federal Cabinet consent is required to nominate GOP directors to the KE’s Board of Directors.
According to a report, the Prime Minister issued these instructions in response to a report from the Power Division sent on July 25, 2022, including the recommended names of three directors to represent the GOP on the KE Board.
K-Electric is a registered corporation with the Securities and Exchange Commission of Pakistan (SECP). According to the Share Purchase Agreement (SPA), the government of Pakistan is a minority shareholder and holds 24.36 percent of the company’s shares.
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The total number of KE’s Board of Directors is 13, comprised of 10 KESC-nominated Directors and 3 GOP members.
K-Electric announced last month that they would hold their annual meeting on July 29, 2022, to elect new board members. Accordingly, the Company requested that the GOP’s nominations be disclosed no later than July 15, 2022, as mandated by the SECP.
Two government KE board directors
PD requested two director nominations to represent the GOP on the KE board.
Due to time constraints, the Power Division nominated the following individuals with the approval of Federal Minister for Power Division Khurram Dastgir Khan: 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)). The Power Division requested post-hoc approval from the Prime Minister for the GOP nominations in response to a Cabinet resolution from January 4, 2002.
According to the sources, the Prime Minister’s Office has communicated that the PM has reviewed the executive summary.
The Premier directed the Power Division to seek the Ministry of Law & Justice’s views and opinion on whether Cabinet approval would suffice in this case, given that the investment in K-Electric shares is in the name of the President of Pakistan and then resubmit the executive summary accordingly.
