State Trading Organization (STO) has revealed that their Annual General Meeting will be held on the 30th of May.
The AGM notice issued by the company stated that the AGM will be held on Wednesday, 30th May at 2200hrs. The AGM is to be held in Dhoshimeynaa Hall in Dharubaaruge.
In this AGM, the company will pass the minutes of the 2016 AGM, pass the Director’s Report and Financial Statements, the dividend from 2017 earnings and the appointment of Auditors and Board of Directors. Additionally, the shareholders will have to pass the changes proposed to the bylaws.
STO had passed to disburse MVR 55 per share from the MVR 211 million earned as profits in 2017.
The current Board of Directors is comprised of:
As part of the changes to the bylaws, STO revealed that the position of CEO is to be added to match corporate governance code issued by Capital Market Development Authority (CMDA). The amendments will seek to add in appointing CEO, responsibilities and removal from position.
Presently, STO does not have a CEO, while the MD head the company. If the motion passes then the MD will serve in dual roles of ‘MD and CEO’, as stylized.
Proposed amendments state that the Director appointed as Managing Director must be appointed as CEO. In the event, the said candidate loses the position of Managing Director, then the candidate also loses the position of CEO.
The position of CEO mirrors the responsibilities of the Managing Director and does not offer additional pay or perks.
Additional changes to the bylaws were proposed as well, including setting the quorum for board meetings at four Executive Directors. STO added that this amendment was proposed to limit control vested with a single individual and to negate difficulties in holding meetings.
As of now, the quorum is met when majority is achieved from one Executive Director, a Director appointed by general shareholders and rest of Board Directors. In the event required quorum is not met, then the meeting must be postponed by seven days. If the company fails to meet quorum in the next session, then the meeting can be held with the permission of the Registrar of Companies. STO had proposed to nullify this aspect.
In last year’s AGM, the company passed to disburse MVR 51 as dividends.
STO has appealed to all interested shareholders to register to participate in the AGM. Registrations can be carried out through STO website and by submitting completed forms to STO head office.