Mai Khola Hydropower Announces AGM on December 11
20th November 2025, Kathmandu
Mai Khola Hydropower Limited has officially called its 5th Annual General Meeting (AGM), scheduled to convene on December 11, 2025 (Mangsir 25, 2082).
Mai Khola Hydropower AGM
The meeting will be held at Smart Durbar, Sakhambari, Kathmandu, starting at 11 AM. This AGM is particularly significant as it includes several high-impact proposals concerning the company’s capital structure and future growth.
Key Financial and Capital Agendas
The AGM will address core financial performance from the past fiscal year and propose future capital mobilization plans, which are crucial for the company’s long-term operational stability, especially given the challenges faced by hydropower projects in recent times, including recurring flood damage.
No Dividend Proposal
A key point for investors is the absence of any immediate returns, as the company has not included any proposal for dividend distribution (either cash or bonus shares) from the profits of the last fiscal year. This decision likely reflects the company’s need to conserve capital for project stabilization and future expansion.
Rights Share Proposal
A major agenda item focuses on bolstering the company’s financial structure through the issuance of new shares. The AGM will discuss and ultimately seek approval for a proposal to issue 1:1 rights shares.
This means shareholders would be eligible to receive one new share for every share they currently hold.
The proposal has already been filed with the regulatory board, likely the Securities Board of Nepal (SEBON), indicating that the company has initiated the necessary regulatory process.
The AGM will also pass necessary resolutions to authorize the Board of Directors to carry out all required procedures for the rights issue, including necessary amendments to the company’s Memorandum of Association (MoA) and Articles of Association (AoA) to reflect the increased authorized and issued capital.
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The issuance of rights shares is a common strategy for hydropower companies to raise fresh equity capital, often to fund project expansion, secure additional loans for reconstruction, or pay off existing liabilities.
Operational and Governance Agendas
Beyond capital structure, the AGM will cover standard, yet essential, corporate governance and operational matters.
Financial Review and Approval: The meeting will include the presentation and approval of the complete set of financial statements for the last fiscal year (FY 2081/82). This encompasses the annual report, the auditor’s report, the profit and loss account, and the cash flow statement. This process ensures transparency regarding the company’s operational performance and financial health.
Auditor Appointment: The AGM will finalize the appointment of an external auditor for the current fiscal year (FY 2082/83) and determine their remuneration. This is a critical step for maintaining financial accountability and regulatory compliance.
Investment and Project Plans: An important proposal on the agenda is the plan to invest in other projects or companies. This signals the company’s intent to diversify its revenue streams or acquire new projects to expand its generation capacity. Additionally, the AGM is expected to discuss obtaining additional loans for the reconstruction of existing projects, which highlights structural challenges the company may be facing.
Shareholder Eligibility and Book Closure
To determine which shareholders are eligible to participate in the meeting, the company has announced a specific date for closing its books.
Book Closure Date: The company will maintain book closure on November 27.
Eligibility: Only those shareholders who are listed in the company’s register up to November 26, will be eligible to attend and participate in the AGM and, subsequently, be eligible to apply for the proposed 1:1 rights shares upon regulatory approval.
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