The agreement is aimed at securing the company’s business and protecting the interests of all its shareholders and stakeholders.
The shareholders and directors party to various disputes signed a Deed of Settlement binding them to expedite the settlement of the disagreements.
“As per the Deed of Settlement, the parties have agreed in good faith to settle, compromise, and resolve all disputes and liabilities pursuant to the legal proceedings so as to ensure the undistracted focus, viability and prosperity of the company and also to avoid the expense, inconvenience and distraction of litigation,” CMC chairman Joel Kibe said.
The board now plans to engage the Capital Markets Authority (CMA) on holding an Annual General Meeting and lifting of the suspension of the company’s shares at the Nairobi Securities Exchange.
CMC shares were suspended on September 17, 2011 following a boardroom war that led to the ouster of the company’s chairman, Peter Muthoka, over alleged conflict of interest and over-billing by Andy Forwarders, a logistics firm in which Muthoka holds a stake.
Kibe said the company will be seeking to aggressively recover its lost market share including revamping after sales service from parts supply to quality service delivery in all the company’s operations.
“CMC has commissioned PriceWaterhouseCoopers to assist in streamlining its operating model to enhance efficiency in delivering value to our customers. This will entail realignment of the company’s current operating model, including processes, functions and technology to support its business strategy. This is one in a series of steps aimed at re-positioning the business to deliver more value to customers, suppliers and shareholders,” Kibe said.
Some of majority shareholders at the giant auto firm include Peter Muthoka, Andy Forwarders Limited, Joel Kibe, Paul Ndung’u, Mobicom Limited and Rift Valley Finance Limited among others.