Why Chairman K - Electric Ikram Sehgal has suddenly resigned from top slot?

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Why Chairman K - Electric Ikram Sehgal has suddenly resigned from top slot?

KARACHI - In a surprise move, the Director and Chairman of K-Electric Limited, Ikram Ul-Majeed Sehgal has resigned from the directorship of the company with effect from November 6, 2019.

The aforesaid information was disclosed via a statement issued by the company to the Pakistan Stock Exchange.

Ikram Sehgal had succeeded Tayyab Tareen who had resigned from his position in January this year.

Sources close to K-Electric said that differences had developed in the board on some major initiatives. Sehgal and the rest of board members were in a row due to his stance on the death toll due to electrocution of more than 30 people on July 29 and 30 this year.

He took a stance that K-Electric will own its responsibility of death if a third party conducts an investigation. He was told later by a KE’s internal investigation team that two people genuinely passed away due to the fault of KE.

Sehgal was named in the FIR. He appeared in the court’s hearing and issued a statement that K E will own its responsibility if a fault is proved. The statement was disliked by a majority of the directors at KE’s board and which resulted in differences among them.

The sources further added that K-Electric is majority-owned by Abraaj and the proposed sale of their stake is likely to prove the biggest source of recovery funds for Dubai-based Abraaj’s creditors which will also provide some money to investors.

”Ikram Sehgal will be right in feeling a moral obligation to question such moves while discussions on securing long term shareholder value were ongoing”. added the source.