CAC removes altered AEDC board composition — Chairman

The Chairman of the Board of the Abuja Electricity Distribution Company (AEDC), Amb. Shehu Malami, has said the Corporate Affairs Commission (CAC) has removed recent alterations in the board’s composition. In a statement on Tuesday, Amb. Malami said his co-shareholders and partnering firm, Copperbelt Electricity Corporation (CECA), had altered the company’s documents at CAC to […]

The Chairman of the Board of the Abuja Electricity Distribution Company (AEDC), Amb. Shehu Malami, has said the Corporate Affairs Commission (CAC) has removed recent alterations in the board’s composition.

In a statement on Tuesday, Amb. Malami said his co-shareholders and partnering firm, Copperbelt Electricity Corporation (CECA), had altered the company’s documents at CAC to change the firm’s ownership structure.

He said the partners had complained to CAC and other relevant government bodies about the infractions by CECA.

“In this regard, I am pleased to inform the general public that we are in receipt of a letter from CAC, Ref: COM/CAV/VOL.1/2020/155, dated 14th of December, 2020, informing the Board of AEDC that all infractions and illegal filings by CEC have been expunged and the original shareholders and directors fully restored.”

Malami further said the expunged matter included notice of change of directors (CAC 7A), return of allotment (CAC 2A) and notice of appointment/change of company secretary (CAC2.1); all filed on May 9, 2020.

Malami who is the Chairman of Xerxes Global Investment had partnered with CECA to create KANN Utility Corporation with both having about 50 per cent or less stakes in KANN, to acquire AEDC in 2013.

He noted that CECA had below 30 per cent of stake in AEDC and should not have taken any action without consent from other shareholders.

CECA is yet to formally respond to the CAC development, but a senior official said a court order of May 8, 2020, granted legality to the actions taken at CAC.

However, a court ruling sighted by our reporter indicates that a Federal High Court in Abuja has authorised the windup of Xerxes Global, Malami’s company, as of December 1, 2020.

The suit’s number: FHC/ABJ/PET/10/2019, was ruled by Justice Okon Abang as appointing the chief registrar of the court as the liquidator to windup Xerxes Global in line with the requirements of the Company and Allied Matters Act (CAMA).