Bid to oust KE CEO collapses

Move led by director Javed Kureishi fails after five directors quit session, exposing split among shareholders

ISLAMABAD:

A high-stakes attempt by K-Electric (KE)'s independent director Javed Kureishi to remove CEO Syed Moonis Abdullah Alvi collapsed on Thursday when five board members walked out of a crucial meeting, declaring that the company must not be dragged into "internal politics."

The meeting, convened specifically to push through top management changes, unravelled almost immediately after the majority bloc read out a prepared statement warning that it would not be "appropriate for the Board to reach an impasse of five votes for and five against."

The walkout stripped the meeting of its quorum, halting all decisions and dealing a serious blow to Kureishi's push for leadership change. The departing directors stated that their decision was taken "in the best interest of K-Electric," arguing that the Board should not proceed when members risk legal complications or when votes are likely to end in a deadlock.

The directors emphasised that the company's focus should remain on "serving the people of Karachi with safe, reliable, and uninterrupted power," not on internal disputes.

Sources said Kureishi had expected to secure the votes needed to remove Moonis Alvi, believing he had the support of Shaheryar Chishty's AsiaPak Holdings, which had already expressed willingness to back a CEO nominee proposed by the government. That confidence reportedly grew after weeks of quiet lobbying from government quarters.

However, divisions within the board only deepened. The meeting followed an earlier breakdown on November 5, when five directors failed to attend, resulting in a lack of quorum. Thursday's session was called to revive the stalled agenda but instead exposed widening fissures between the government, AsiaPak, and Saudi Al-Jomaih shareholders.

According to insiders, Secretary Finance Imdadullah Bosal again did not attend Thursday's meeting, while Secretary Power Dr Fakhr-e-Alam Irfan participated but was reportedly unsettled by the escalating tension among members. Some directors were also said to be uncomfortable with the perception that Chairman Mark Skelton was receiving external advice and conveying inconsistent messages to different board members.

Even routine agenda items became contentious. The appointment of a new Chief Distribution Officer (CDO) remained unresolved despite an earlier FIR against the candidate being withdrawn. Several directors cautioned against senior appointments while shareholder disputes remained unresolved, warning that such moves could heighten instability within the company.

Kureishi had also pressed to finalise the hiring of the Chief Financial Officer (CFO) and CDO within a week and to begin the search for a new CEO immediately. However, insiders revealed that no consensus candidate for the top position has yet emerged.

With the latest walkout, Kureishi's bid to remove the CEO appears to have suffered a major setback, leaving KE's leadership crisis unresolved and tensions among key shareholders at a new high.

Despite the intensifying boardroom friction, Al-Jomaih Group, one of K-Electric's largest foreign shareholders, has publicly reiterated its commitment to an amicable resolution of the company's disputes.

Earlier this year, Al-Jomaih and its Kuwaiti partner, National Industries Group (NIG), served a $2 billion legal notice on Pakistan under international investment treaties, citing delays in approving KE's share transfer to Shanghai Electric and prolonged non-payment of dues. Even in that notice, the investors said they were "open to resolving the matter amicably" — a position insiders say reflects their broader preference for cooperation over confrontation.

When contacted, a K-Electric spokesperson confirmed the meeting but avoided details. "In continuation to our intimation dated November 7, 2025, on the Pakistan Stock Exchange (PSX), this is to inform you that the Board of Directors of the Company at its meeting held on Thursday, 13 November 2025 considered matters other than the financial results of the Company," the spokesperson said.

Javed Kureishi, the board member who initiated the move to remove the CEO, did not respond to requests for comment.