AEDC: Corporate Affairs Commission Overrules CEC In Attempted Illegal Alteration Of Board, Management Structure

The Corporate Affairs Commission (CAC) has discovered and expunged dubious alterations made by a minority shareholder,  Copperbelt Electricity Corporation (CEC) in Abuja Electricity Distribution Company (AEDC) in an attempt to deceive and take possession of board and management of the power distribution company.

CECA, a subsidiary of KANN Utility Company Limited, had unilaterally altered Articles of Association and composition of shareholding of KANN which has 60% shares of AEDC.

But two separate documents obtained by OPTIMUM TIMES, revealed that the CEC effected the alterations in KANN “without the knowledge or agreement of existing shareholders including Bureau of Public Enterprises (BPE); went ahead to apparently sell some shares of the company, then proceeded to change the filing of the company shareholding composition, and further went ahead to attempt making major changes at the Board, and Management levels of the AEDC.”

Although other shareholders of the AEDC had since warned CEC of its illegal action and requested it to reverse such brazen illegality, but it remained adamant until it was uncovered by the CAC based on complaint from KANN.

According to CAC in a letter  of December 14 to KANN in response to KANN’s complaint, The Commission has therefore granted approval to expunge the following documents from the records of Kann Utility Company Limited: Notice of change of directors (CAC 7A) filed via resolution dated 9″ May, 2020; Return of allotment (CAC 2A) filed via resolution dated 9″ May, 2020; and Notice of appointment/change of company secretary (CAC 2.1) filed via resolution dated 9″ May, 2020.”

Further, based on the CAC action which was communicated to KANN, the Chairman of KANN who doubles as the Chairman of board of Directors of AEDC, Ambassador Shehu Malami, warned the public to beware of transacting business with CEC.

According to him, ” the general public is hereby notified that anyone/entity that is or has been conducting business with CEC on any matter dealing with unauthorised sale of shares, appointment of ‘directors’, advancement of credit, payment/receipt of money or other activities that are not in the usual routine of the business, does so at his/her own risk.

“In view of the unfortunate incident at AEDC, the Board of AEDC led by me Ambassador Shehu Malami OFR, CON wish to commend the conduct of the entire staff of AEDC and our stakeholders for having faith with the duly recognised Board of AEDC.

“On behalf of the Board of AEDC, | can assure you that this unnecessary nightmare caused by the inordinate and illegal activities of CEC, will soon be over and the company will come out of this phase stronger and better with the sole aim of providing quality service and meeting up with our obligations to all our stakeholders.”

Ambassador Malami had recalled that having given CEC a reasonable time to reverse its illegal action, and failed to do so, the Board of KANN chaired by him was left with no choice but to officially complain to the Corporate Affairs Commission (CAC) and other relevant government bodies, charged with such corporate oversight responsibilities.