Posted on March, 2, 2021 at 09:37 am
The ownership puzzle at Kenya Seed Company must be solved now to quell boardroom wrangles that are making it difficult for this firm to achieve its mandate.
News that a section of private shareholders of the seed firm is staging a fresh boardroom coup to wrest control back from government puts into question the structures at the firm.
Ownership of Kenya Seed has over the years been contested with the private shareholders claiming a 60 per cent stake while the government reckons the firm is a parastatal.
The Company Act spells out what should be the components of a company and the kind of structures that should be put in place including procedures for replacing board members.
A lack of clarity about the ownership structure at Kenya Seeds has only served to weaken other internal structures in the firm, which opens room for mismanagement.
It is time the State and private owners lifted the veil on the shareholding structure to stop turf wars at the firm that controls more than 80 per cent of the seed maize market in Kenya.
Source: Business Daily