Synergy Power had scheduled its AGM today at the Amrapali Banquet, Bhatbhateni, but the meeting was called off due to insufficient quorum, according to the company secretary. However, public investors have accused the former board of deliberately complicating the election process, particularly regarding proxy submissions, to retain their influence over the company.
Investors allege governance irregularities
The companyтАЩs largest institutional investor, Everest Venture CEO Tilak Koirala, accused the companyтАЩs directors of illegal and improper activities, which, according to him, prevented them from facing the AGM. Market reporters observed that while the company secretary announced the postponement, members of the board were absent from the premises. Attempts to engage with the board chair and the election officer were also unsuccessful, as they had already left the venue.
The company secretary commented that the former directors have personal guarantees on company loans, which he suggested was a reason they are unwilling to transfer responsibilities to secondary market investors.
Proxy disputes escalate
The AGM also saw a heated dispute over proxy validity. The election officer did not publicly disclose how many proxies were accepted or rejected. Investors claimed that the company repeatedly postponed the meeting, citing lack of quorum, while withholding clear information about proxy registrations. One investor reported that despite submitting a proxy for 60,000 shares, it was invalidated due to alleged signature mismatches, which he denied.
Previously, the AGM scheduled for Poush 28 had been postponed under similar circumstances, with quorum issues cited amid proxy disputes.
Board composition under scrutiny
According to the companyтАЩs bylaws, the board should have seven directors, but investors expressed anger over the managementтАЩs attempt to elect only five directors in the upcoming vote. Tilak Koirala strongly opposed the plan to reduce the board without shareholder approval.
Security concerns and lack of police coordination
Despite the potential for disputes, the company had not informed local police ahead of todayтАЩs meeting. More than 15 private security personnel were present, but the police only arrived after investors contacted them via emergency line 100. One investor noted that other companies typically submit formal requests to police before AGMs, but Synergy Power had failed to do so, raising concerns about the boardтАЩs intentions.
Investors interpreted the use of private security without notifying authorities as indicative of the boardтАЩs mindset and control motives.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
