Karachi: EFG Hermes Pakistan Limited has announced a new extension for its Extraordinary General Meeting (EGM) initially scheduled for October 22, 2024. The meeting, focused on the election of directors, has now been postponed to December 20, 2024, following an order from the Securities and Exchange Commission of Pakistan (SECP).

According to information available from the Pakistan Stock Exchange (PSX), the postponement stems from ongoing merger proceedings involving EFG Hermes Pakistan Limited and Intermarket Securities Ltd, requiring additional time beyond the previously granted 90-day extension. The merger, crucial for the company's strategy, has faced delays, impacting the scheduled election of directors.

The SECP issued an order on September 20, 2024, under Sections 158(3) and 147 of the Companies Act 2017, authorizing this postponement. The decision aims to provide the necessary period for the company to manage the complexities of the merger process effectively.

This order follows a series of communications with the SECP, including a recent submission by EFG Hermes on September 18, 2024, requesting an additional 60-day deferment due to the merger's ongoing legal proceedings. The SECP's latest directive supports the company's request, highlighting its commitment to ensuring compliance and governance continuity amidst corporate restructuring.

Furthermore, the SECP's decision underlines its ability to intervene in corporate affairs to ensure that key corporate governance activities, such as directors' elections, are conducted in an orderly manner, especially when significant transactions like mergers are pending.

The next court hearing regarding the merger is scheduled for October 1, 2024, which may provide further insights into the timeline and finalization of this significant corporate activity.