For the first time, Nepal Stock Exchange (Nepse) interfered in a dispute of a listed company today and directed National Hydropower Company to appoint share registrar within three days.
The board of directors should come to terms and appointment share registrar within three days, it said, asking the both faction of the directors to patch up.
The hydropower has failed to even held its annual general meetings since last three years due to dispute in the board.
Likewise, Nepse – the front line regulator of the capital market – has also issued a directive to recognise Growmore Merchant Banker as its Registrar to Shares according to Patan Appellate Court’s verdict issued on July 11, 2013.
Following the tussle in the board and absence of Registrar to Shares, brokers had also stopped trading the company’s shares as the shares cannot be transferred from sellers to buyers in an absence of Registrar to Shares.
Nepse has also asked the company to inform the compliance of the directive or face penalty.
Among the two warring groups refusing to recognise the others existence one favours the promoter NB Group and the other group the public shareholders.
The public shareholders had held the 14th and 15th annual general meetings in January 2013 and appointed Growmore as the share registrar. But the other group moved to the Patan Appellate Court asking it to invalidate the annual meetings.
The National Hydropower — that has been promoting 7.5-MW Indrawati III — has listed 13,863,462 unit shares at the Nepse.