ISLAMABAD: Legal disputes among K-Electric (KE) shareholders have hindered the federal government’s efforts to appoint new directors to the company’s board. At a recent high-level meeting chaired by Prime Minister Shehbaz Sharif, the cabinet approved the appointment of a new independent director to replace the previously approved member.
The Power Division informed the meeting that KE, a private corporate entity, is registered with the Securities and Exchange Commission of Pakistan (SECP). According to the 2005 share purchase agreement, the Government of Pakistan holds a 24.36% stake in KE, ICES Power holds 66.4%, and other shareholders hold 9.24%.
KE’s board of directors consists of 13 members: three nominated by the government, nine by ICES Power, and one by other shareholders. Traditionally, the government nominates two ex-officio directors and one independent director. The latest nominations, announced on December 22, 2022, included the Power Division Secretary, the Finance Division Secretary, and Nasir Mahmood Khosa as an independent director.
However, these nominations were stalled due to a stay order by the Sindh High Court in a case initiated by Al Jomaih Company of Saudi Arabia against changes in the board composition following litigation in the Cayman Islands between ICES Power shareholders.
Following Nasir Mahmood Khosa’s withdrawal, a new panel of three independent members—Javed Kureishi, Suhail Anwer, and Sadia Haroon—was proposed. After thorough assessment, the cabinet approved the nomination of Javed Kureishi as the government’s independent director on the KE board.
KE confirmed that these nominations had not taken effect due to the Sindh High Court’s restraining order. Separately, the government has appointed new directors for Lahore Electric Supply Company (Lesco) and Faisalabad Electric Supply Company (Fesco). Omer Farooq Khan has been named chairman of Fesco, with independent directors Zoe Khurshid Khan, Pervaiz Iqbal, Adil Bashir, and Amir Zia. Amir Zia has also been appointed chairman of Lesco, with independent directors Zafar Mahmood, Zoe Khurshid Khan, Asad Shafi, and Tahir Basharat Cheema.
Story by Zafar Bhutta
