Karachi (Business Reporter): Hum Network Limited (HUMNL) and it’s share holder Kingsway Fund will try to resolve a dispute on the appointment of share registrar in the coming Extra Ordinary General Meeting.
Hum Network’s board of directors had decided to change share registrar on July 6. HUMNL board approved the plan to discontinue its relationship with the Central Depository Company and appointed F.D Registrar Service as the new share registrar. This decision was taken few weeks before the election of directors.
However, Kingsway Fund, which owns fairly large numbers of HUMNL shares, objected this decision. “Kingsway Capital Partners Limited representing Kingsway Fund as the share holding company has objected to change the share registrar,” stated Hum Network’s notice sent to the Pakistan Stock Exchange.
“The existing board is completing its three years term on August 21, 2020. the share registrar of the company provides vital services in conducting free and fair elections of directors which included providing ballot papers for the election of directors making arrangements for the collecting and counting votes received through posted ballots,” HUMNL mentioned share holders’ objection in its notification.
Kingsway Fund bought 16.5 million shares of Hum Network at the price of PKR 8.9 per share on June 8, 2020. Therefore, their objection was taken seriously and a resolution will be presented in EOGM for revoking the decison of appointing new share registrar.
“The company has also decided to revoke its decision to appoint F.D Registrar Services as the Independent Registrar/Transfer Agent in place of the Central Depository Company,” HUMNL management is presenting this resolution in the EOGM to be held on August 22.
However, this resolution is the third point on the agenda. According to the EOGM notice, this special business will come after the election of directors.
However, HUMNL issued a clarification in the notice of EOGM and refuted allegations against the board. “It is however clarified that the proposed change of the share registrar was along various steps being taken by the management to reduce the overall cost.”
“The allegations leveled against the present Board of Directors are completely unwarranted and without any factual basis,” EOGM notice stated.
Election of Directors
Election of the Board of Directors will be held on August 22, 2020. Hum Network’s seven directors Mazharul Haq Siddiqui, Sultana Siddiqui, Mahtab Rashdi, shunaid Qureshi, Ket Geb (R) Asif Malik Yaseen, Hasan Razur Rahim, Sohail Ansar and Nabigha Naseer Masood are retiring fro Hum Network’s board.
Hum Netowrk’s shares had witnessed volatility since March. Share prices of HUMNL climbed from PKR 2.50 to PKR 17 in four months. Eyebrows raised on heavy buying and market filled with the rumors of hostile takeover. However, prices had started falling down and now HUMNL is being trade around PKR 11.15 per share.
Everyone in the market is asking one questions: Will these directors be reelected successful or some new faces representing other major share holders will join the board?