Following the Safaricom Investment Co-operative’s AGM held on 8th of February 2020, below are the resolutions passed and other key outcomes.
2020 AGM RESOLUTIONS
1. Committee members’ indemnity
The General Meeting resolves that the Board members’ indemnity be and is hereby retained at KES. 3M per person
2. Borrowing powers
i. The General Meeting resolves that the borrowing ceiling for the Society be and is hereby retained at KES. 2 Billion
ii. Approval of charges on property
– The General Meeting resolves that, in lieu of Special General Meetings on specific borrowing, SIC Board be and is hereby authorized to borrow against properties currently owned by SIC or those to be acquired with a view to subsequent development and/or disposal provided that the total indebtedness of SIC will not exceed the sum of KES. 2 Billion (borrowing limit)
3. Monthly Contributions
In order to enhance the Society’s operations and to take advantage of investment opportunities for the purposes of maximizing returns for the Society’s members, the General Meeting resolves:
• That the minimum individual monthly contribution (KES. 3,000) & group monthly contribution (KES 15,000) be deposited into an Interest Earning Deposit Account.
• That any amount above the minimum monthly contribution also be deposited in the Interest Earning Deposit Account unless the contributing member provides explicit instructions that the amount is used to purchase shares from the Society’s secondary market.
• That the Interest Earning Deposit Account shall pay interest at the Central Bank Reference (CBR) rate + 2.5% per annum. As at 31 January 2020, the CBR rate is 8.5% resulting in an interest rate of 11%.
• The monthly contributions shall be held in the Interest Earning Deposit Account for 2 years from 1st March 2020 after which the contributing member shall choose to retain or withdraw the funds in the account for a further 2 years at an interest rate as shall be determined in the General Meeting held that year (2022).
4. Share split
The General Meeting resolves:
i. To increase the number of shares of the Society by dividing each existing share into ten (10) shares.
• Record date of split; that the record date for the share split to be 1st April 2020.
ii. Adjustments to by-laws to account for share split
• The number of shares owned by members shall be multiplied by 10 and the share price shall be divided by 10.
• The minimum shareholding to qualify for Board Membership be multiplied by 10 to 25,000 shares
The board to go ahead and make changes relating to the following thresholds:
• The minimum number of shares to become a member of the Society
• Minimum number of shares that can be listed for sale in the Secondary market other than by a member exiting the Society
5. Appointment and Remuneration of Auditors
The General Meeting resolves to authorize the Board to appoint and fix the remuneration of the auditor
6. Rebates Payout
The General Meeting resolves
- That going forward, the Society shall pay out rebates of up-to a maximum of 60% of available surplus. The balance shall be retained in the Society to meet statutory reserves (20%) as provided for by the by-laws and for general reserves (20%) to fund operations.
- That the Board may offer special rebates as deemed appropriate with the same being approved at a General Meeting
Other Key Outcomes
Election of Officials:
Management Committee; The following were elected into the Management Committee
i. Mike Akal
ii. Vincent Opiyo
iii. Jackson Mulwa
Supervisory Committee; The following was elected into the Supervisory Committee are:
i. Peter Mukera