The stock exchange has ordered National Hydropower Company (NHPC)’s sparring directors to come to terms regarding the appointment of a share registrar within the next three days and get their act together.
Nepal Stock Exchange (Nepse) has issued a directive to the listed hydropower company to recognise Growmore Merchant Banker as its Registrar To Shares (RTS) as per Patan Appellate Court’s order issued on July 11, 2013.
The two factions of company directors have been fighting since more than three years to take control of the company. Following the tussle and absence of RTS, brokers had stopped trading the company’s shares. In the absence of RTS, shares cannot be transferred from sellers to buyers.
Furthermore, Nepse has also ordered the company’s board and management to inform the stock exchange regarding the compliance of the order or face penalty.
There are two boards of directors in the company, with each group refusing to recognise the other’s existence. One faction favouring the promoter group — NB Group — and the other group of public shareholders have been in disagreement regarding the appointment of RTS since a long time.
The board supporting NB Group considers Yogendra Rai as the chairman, while the other group is calling Kumar Pandey their chairman since the past one year.
Moreover, public shareholders had conducted NHPC’s 14th and 15th annual general meetings (AGMs) in January 2013 and appointed Growmore as the share registrar. However, the other group had immediately lodged a case at Patan Appellate Court calling the AGMs and all the decisions taken as invalid. Although the court had given its verdict, things had worsened, as both groups tried to muscle their authority.
This is the first time that Nepse has wielded its power as the frontline regulator to protect the interest of minority investors.
National Hydropower Company has 13,863,462 unit shares listed at Nepse, with about 10 million units owned by about 6,000 minority shareholders.
“We are asking the company to follow the court’s order so that investors can resume trading and transfer their shares,” said spokesperson for Nepse Shambhu Pant. “If the company does not respond favourably within the given time, Nepse will take strong action,” he warned.More than 43,000 of the company’s shares are yet to be transferred.
Troubles at NHPC had surfaced more than four years back as two public directors — Deepak Karki and Prakash Rajaure — accused NB Group and its directors Laxmi Bahadur Shrestha and Jen Shrestha of using NHPC as their personal cash cow. However, the capital market regulator — Securities Board of Nepal — had been unable to do anything to salvage the company.
source: the himalayan times,19 march 2014
LINK
Nepal Stock Exchange (Nepse) has issued a directive to the listed hydropower company to recognise Growmore Merchant Banker as its Registrar To Shares (RTS) as per Patan Appellate Court’s order issued on July 11, 2013.
The two factions of company directors have been fighting since more than three years to take control of the company. Following the tussle and absence of RTS, brokers had stopped trading the company’s shares. In the absence of RTS, shares cannot be transferred from sellers to buyers.
Furthermore, Nepse has also ordered the company’s board and management to inform the stock exchange regarding the compliance of the order or face penalty.
There are two boards of directors in the company, with each group refusing to recognise the other’s existence. One faction favouring the promoter group — NB Group — and the other group of public shareholders have been in disagreement regarding the appointment of RTS since a long time.
The board supporting NB Group considers Yogendra Rai as the chairman, while the other group is calling Kumar Pandey their chairman since the past one year.
Moreover, public shareholders had conducted NHPC’s 14th and 15th annual general meetings (AGMs) in January 2013 and appointed Growmore as the share registrar. However, the other group had immediately lodged a case at Patan Appellate Court calling the AGMs and all the decisions taken as invalid. Although the court had given its verdict, things had worsened, as both groups tried to muscle their authority.
This is the first time that Nepse has wielded its power as the frontline regulator to protect the interest of minority investors.
National Hydropower Company has 13,863,462 unit shares listed at Nepse, with about 10 million units owned by about 6,000 minority shareholders.
“We are asking the company to follow the court’s order so that investors can resume trading and transfer their shares,” said spokesperson for Nepse Shambhu Pant. “If the company does not respond favourably within the given time, Nepse will take strong action,” he warned.More than 43,000 of the company’s shares are yet to be transferred.
Troubles at NHPC had surfaced more than four years back as two public directors — Deepak Karki and Prakash Rajaure — accused NB Group and its directors Laxmi Bahadur Shrestha and Jen Shrestha of using NHPC as their personal cash cow. However, the capital market regulator — Securities Board of Nepal — had been unable to do anything to salvage the company.
source: the himalayan times,19 march 2014
LINK
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