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The suspension of trading of Fijian Holdings Limited (FHL) shares has been lifted.
This follows further clarification by the FHL on the shock changes made to its board and the group managing director last week.
The South Pacific Stock Exchange suspended yesterday saying the company needed to make more disclosures on details surrounding these changes.
In a statement, new FHL managing director Sereana Qoro clarified the changes made to the FHL board were in accordance with the company’s memorandum and articles of association.
“In accordance with Article 78, the Minister of Fijian Affairs has the right to appoint six out of the maximum of nine directors on the board as representatives for B-Class shareholders, ‘after consultation and, with the prior agreement of the Minister of Finance and of the Prime Minister,” she said.
The six directors representing B-Class shareholders include Robin Storck, Colonel Mohammed Aziz, Padam Lala, Sereana Qoro, Ulaiasi Baya and Isoa Kaloumaira.
Qoro says the Fijian Affairs Board and the Fijian Trust Fund hold 67 per cent of the company’s total paid up capital or 20 million shares, which accords them the right to select majority seats on the board.
“In this case, the interim Minister for Fijian Affairs has exercised his right to nominate new B-Class directors on the board to fill the casual vacancies filled by the resignation of directors in accordance with article 80 of the memorandum and articles of association of the company,” she added.
Qoro added that out of the nine, three directors represent A-Class shareholders, which are listed on the SPSE.
“At the moment, only Mr Weleilakeba is the remaining A-Class director, which leaves two vacancies for A-Class.”
According to her, the appointment of A-Class directors will be made on or before July 15 and that it would be ratified with all the new appointments at the company’s AGM scheduled for October 31.
She said they met the Capital Markets Development Authority and the SPSE to clarify their position to the market.
Qoro maintained that while there have been changes at the board level, there was no change to the strategic direction of the FHL Group and more importantly, the strategic business units that generate revenue and dividends at the operational level remain intact.
SPSE chief executive Jinita Prasad said the suspension of trading in FHL shares was in order to quell speculation.
In a statement later, she said that the FHL has acted in accordance with its Memorandum and Articles of Association and the SPSE Listing Rules in making the recent changes to their board “therefore the shares in FHL can be traded from tomorrow” (today).
