Five directors of the National Flour Mills (NFM) have resigned, causing the majority state-owned company to be in breach of the Companies Act, according to a statement from the board of the T&T Stock in which it "strongly reprimanded" NFM. The Stock Exchange said that it had come to its attention last week Friday that NFM had advised its its shareholders of the resignation of five of its six directors.
The NFM directors were: Ganesh Sahadeo, chairman and Clarry Benn, Vincent Moe, Ross Alexander, Edward Comissiong and Leroy Mayers.
There was no clarification in the statement from the Stock Exchange as to which five of the six directors had resigned, but a source close to the company indicated that Ross Alexander was the only director to remain on the board. The Stock Exchange said: "These vacancies have not been filled and cause NFM to be in breach of Section 64 of the Companies Act which provides that a public company shall have no fewer than three (3) directors." The Stock Exchange also said that it had come to its attention that NFM had sent a Notice to Shareholders dated February 15 convening a special meeting on March 3 to fill the vacancies in the Board of Directors as required by section 77(2) of the Companies Act.
But, according to the Stock Exchange, neither the notice of the resignation of the directors nor the notice convening the special meeting of shareholders were disclosed by the NFM to the exchange, as required by the rules of entity. "The TTSE has strongly reprimanded NFM for the above breaches and would have taken stronger action if the special meeting of shareholders had not been called to fill the vacancies in the Board of directors. "The TTSE wishes to remind all publicly listed companies of their obligation under the Rules of the TTSE to immediately disclose to the TTSE and the investing public all material changes and material information." Fifty-one per cent of NFM is held by National Enterprises Ltd, the investment holding company that holds the State's 51 per cent stake in TSTT and Tringen as well as some of its shares in Phoenix Park Gas Processors and Atlantic LNG.