CMA reviews enforcement action against former CMC holdings directors

By Grace Maina/Statement

The Board of the Capital Markets Authority (CMA), having received petitions for the review of the enforcement action taken against Peter Muthoka and Joseph Kivai, former directors of CMC Holdings Limited, in November 2015, and following due process hearings, has resolved to review aspects of the sanctions imposed.

The enforcement action taken in August 2012 imposed lifetime disqualification of the two individuals from holding directorships in CMC Holdings and imposed a lifetime ban disqualifying Mr. Muthoka from holding directorship position in any public listed company, or licensed or approved persons including securities exchange in the capital markets in Kenya.

Following the review of the petition filed by Mr Muthoka and Mr Kivai, the CMA Board determined that the disqualifications relating to CMC Holdings had lapsed following the de-listing of the company, and resolved to review the lifetime disqualification for Mr Muthoka to five years, effective August 3 2012 to August 3 2017.

In arriving at its decision, the CMA Board considered the grounds of the petition and submissions made, including the fact that neither petitioner had been involved in the maintenance of fraudulent offshore accounts drawn from shareholder funds.

The petitions had requested for the setting aside, lifting and/or substitution of the Authority’s disqualification orders.

  

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