Minorities want board representation in listed companies

Minority shareholders of companies listed on the Malawi Stock Exchange (MSE) have proposed to have representation from the minority in the boards of listed firms. 

Secretary of the Minority Shareholders Association (MSA) of listed companies, Frank Harawa, said this on Friday at Bingu International Convention Centre (Bicc) during the Standard Bank Malawi annual general meeting.

He said this will promote better communication between the boards and the minority shareholders and hence promote a healthy working relationship between the board of directors and the minority shareholders.

“It will be easier for us to understand issues concerning the companies that we own shares in. For example issues to do with dividend policies and others. Some listed companies have already started doing that for example NITL [National Trust Investment Limited] and we are in talks with Sunbird,” said Harawa.

In response, board chair for Standard Bank, Rex Harawa, said they will take the request into consideration.

Meanwhile, during the meeting, Standard Bank declared a dividend of K5 billion, representing K21.31 per share. The group also paid a dividend of K1 billion in September, which represented K4.26 per share.

Standard Bank posted a profit after tax of K19 billion in the year ending 31 December 2016, 45 percent higher than the previous year.

Standard Bank shares are currently trading at K560 each on MSE. n