June 23, 2024
K-Electric Board Dispute Illustration

Legal battle over K-Electric's board control

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In a recent turn of events, the Grand Court of the Cayman Islands has ruled in favor of the majority shareholder in the ongoing board dispute of Pakistan’s K-Electric. The court ordered the minority shareholders to terminate their petition in the high court of Pakistan’s Sindh province, which sought to prevent the Infrastructure and Growth Capital Fund (IGCF) from appointing its nominees to K-Electric’s board of directors.

The Battle for Control

K-Electric, which is Karachi’s sole provider of electrical power, has been the subject of a controversial power struggle for some time now. KES Power Limited, an investor group that also includes Al-Jomaih Power Imperfect of Saudi Arabia, National Industries Group of Kuwait, and IGCF, is the primary shareholder in the company that is traded on the Pakistan Stock Exchange. KES Power Limited is the majority owner of the company. The conflict between the new owners and the current owners has not shown any signs of becoming resolved; yet, it has resulted in a respectable tussle that has stressed international civility.

The Court’s Decision

In October 2022, the Sindh court issued a stay order to finalize any change in K-Electric’s sheet due to the disapproval. IGCF, which has a 53.8% shareholding in Cayman Island-registered KES Power Limited, which in turn owns 66.4% of K-Electric, challenged this decision. The recent ruling by the Grand Court of the Cayman Islands has now ordered the minority shareholders to withdraw their petition, thereby allowing IGCF to proceed with its plans to appoint nominees to K-Electric’s board.

Minority Shareholders’ Dismay

The judgment made by the court has not been favorably accepted by any of the parties that were involved. A number of K-minority Electric’s shareholders are furious and dissatisfied with the way the process has been handled, according to their statements. The minority shareholders, which include the Saudi holding company Al-Jomaih and Denham Investment, which has bases in both Saudi Arabia and Kuwait, have not yet provided a response to the judgment that the court has issued.

Implications of the Ruling

The court’s decision could potentially clear the path for IGCF to take more control over K-Electric’s operations. With three vacant slots on the board, IGCF’s ability to appoint its nominees could significantly influence the company’s future direction. However, the ruling has also raised questions about the rights of minority shareholders and the balance of power within the company.

The Future of K-Electric

K-Electric’s holding structure has long been considered an obstacle to its acquisition by China’s state-owned Shanghai Electric, a deal that has been delayed for years due to regulatory and legal hurdles in Pakistan. While IGCF has declined to comment directly on whether it supports Shanghai Electric’s bid for K-Electric, it has stated that it supports any effort leading to affordable electricity for Karachi.


The court’s ruling marks a significant development in the ongoing board dispute at K-Electric. As the dust settles, all eyes will be on how this decision impacts the company’s future, the potential acquisition by Shanghai Electric, and the provision of affordable and reliable electricity to Karachi. Amidst these uncertainties, one thing is clear: the power struggle at K-Electric is far from over.


In Pakistan’s K-Electric board dispute, the Grand Court of the Cayman Islands sided with the Infrastructure and Growth Capital Fund (IGCF), the biggest stakeholder. This ruling requires minority shareholders in Sindh province’s high court to abandon their case to prohibit IGCF from nominating K-Electric board members. The court’s verdict gives IGCF, which owns a large stake in K-partnership, Electric’s KES Power Limited, more power over the corporation. Shanghai Electric’s delayed acquisition of K-Electric may also be affected. These boardroom fights leave K-Future Electric’s future uncertain.

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