Karachi, K-Electric Limited, a leading power utility company, has issued a comprehensive update regarding ongoing legal proceedings between shareholders. In accordance with the Securities Act, 2015, and regulations of the Pakistan Stock Exchange Limited, the company is making a concerted effort to keep its stakeholders informed about the latest developments in the dispute.
The company’s latest disclosure, dated August 25, 2023, pertains to the proceedings taking place before the Grand Court of the Cayman Islands involving K-Electric Limited and its shareholders. The dispute centers around the shareholders’ agreements and actions that may be in breach of these agreements.
On October 21, 2022, Al Jomaih Power Limited and Denham Investments Limited, the original shareholders, initiated legal proceedings against IGCF SPV 21 Limited and others before the High Court of Sindh in Karachi, Pakistan. The allegations asserted that SPV 21 and others had taken actions that violated the Shareholders’ Agreement dated October 15, 2008, subsequently amended. The High Court of Sindh issued an ad-interim order, effectively halting any changes to the K-Electric board.
In response, SPV 21 commenced proceedings in the Grand Court of the Cayman Islands, emphasizing that the jurisdiction clause in the Shareholders’ Agreement mandated disputes between the parties to be resolved by the Grand Court of the Cayman Islands or an English Court.
The recent ruling from the Cayman Islands Court Order determined that disputes between the parties should be resolved in a court in the Cayman Islands or England, rather than the High Court of Sindh in Karachi. However, the Grand Court has postponed its order, awaiting further deliberations scheduled for October 10, 2023.
K-Electric Limited confirmed that the status of the proceedings initiated in the High Court of Sindh in Karachi remains unchanged. The ad-interim order issued by the High Court on October 21, 2022, will persist until at least October 10, 2023, which marks the date of the next hearing in the Cayman Islands.
The company clarified that the proceedings in the Grand Court of the Cayman Islands exclusively dealt with determining the jurisdiction for the underlying dispute, not the merits of the claims between the parties involved.
This disclosure underscores K-Electric’s commitment to transparency and accountability as it navigates through the complex legal landscape surrounding the shareholders’ dispute. Market observers and stakeholders will be closely monitoring the proceedings to gauge their potential impact on the company’s future course of action and operations.