ARM’s director and secretary resign
ARM’s executive director Rick Ashley, who previously held the position of chairman in the company, has resigned amid the firm’s efforts to raise more funds to stabilise operations.
Mr Ashley was appointed as executive director in October last year to take over day-to-day operations from chief executive Pradeep Paunrana who said he would be focused on talks with the company’s creditors and prospective new shareholders.
Mr Paunrana on Friday said he had resumed his office duties on a full-time basis. He did not however respond to our queries on the resignations.
The Nairobi Securities Exchange-listed firm last week announced that Mr Ashley, who has been with the company for a decade, had resigned on May 3.
ARM also disclosed that its company secretary Ramesh Vora had resigned effective April 27 after serving for more than 24 years.
“Rick has served on board for over 10 years and has resigned due to personal reasons,” the cement manufacturer said in a filing with the Capital Markets Authority (CMA).
“The board of directors record their sincere appreciation to both for their dedicated service, leadership and guidance.”
Mr Paunrana had earlier said that Mr Ashley would take back his previous position as chairman.
That arrangement would however have breached corporate governance guidelines set by the CMA.
The regulator requires a chairman of a publicly traded company to be an independent, non-executive director, a description Mr Ashley lost with the shift to the executive office.
The CMA, among other criteria, defines an independent director as one who “has not been employed by the company in an executive capacity within the last five years.”
ARM has warned investors that its net loss for the year ended December will widen by at least 25 per cent from Sh2.8 billion a year earlier. The upcoming results for the year ended December will give investors an update on the depth of its capital needs.