Shareholders Back 10% Stake Threshold For Board Seats At Cutix Plc
Cutix Plc has moved to strengthen its corporate governance framework following shareholder approval of a resolution requiring directors representing shareholders to maintain at least a 10 per cent equity stake in the company in order to retain their seats on the board.
The resolution, passed unanimously at the company’s 42nd Annual General Meeting (AGM) held in Nnewi, Anambra State, amended Article 83 of the company’s Memorandum and Articles of Association.
Under the new provision, any director whose representing shareholder’s stake falls below the 10 per cent threshold will automatically cease to hold office, and the board will declare the position vacant.
The decision, according to shareholders, is designed to ensure stronger accountability, promote meaningful representation, and align directors’ interests with the long-term growth of the company.
In addition to the governance amendment, the AGM authorized the board of directors to take necessary steps, including signing relevant documents, to give effect to the resolutions passed.
Shareholders also renewed a general mandate allowing the company to enter into recurrent transactions with related parties under normal commercial terms for day-to-day operations until the next AGM.
Furthermore, the meeting ratified appointments to the Statutory Audit Committee, with Mr Chima Nwosu, Mr Jude Okpala, and Miss Scholastica Chukwuka elected as shareholder representatives, while Mrs. Ijeoma Ezeasor and Mr. Ifeanyi Uzodike will serve as board representatives until the 43rd AGM.
Cutix, a leading manufacturer of electric cables, has released its results for the financial year ended April 30, 2025, posting a profit before tax of N1.609bn.
While it represents a marginal one per cent decline from the N1.619bn achieved in the previous year, the profit remains solid, driven by strong revenue growth.
Revenue for the year surged by 30 per cent to N15.7bn, up from N12.177bn in the previous year.
The bulk of this came from the sales of cables and wires, which generated N11.8bn, while armoured cables contributed N3.8bn, with other product lines accounting for the remainder.
However, this revenue growth came with a sharp rise in cost of sales, which jumped 38.39 per cent to N12.5bn, compressing gross profit growth to just 3.63 per cent, at N3.2bn.
Administrative expenses also climbed significantly, rising to N1.4bn from N1.07bn a year earlier.
Finance costs continued to mount, reaching N440.2m, up from N342.2m, driven by interest payments on term loans, commercial papers, and overdrafts. Despite these pressures, Cutix still managed to hold pre-tax profit steady at N1.609bn.
On the balance sheet side, total assets rose to N8.6bn, reflecting a 19.25 per cent year-on-year growth. However, retained earnings saw a steep drop of 64.27 per cent, settling at N730.2m.
Shareholders Back 10% Stake Threshold For Board Seats At Cutix Plc is first published on The Whistler Newspaper
