It appears Denel is experiencing problems, not only in keeping its operating divisions going, but also in setting up an annual general meeting.
The beleaguered State-owned defence and technology conglomerate headquartered in Irene, Centurion, only published its 2019/20 annual report at the end of January, long after the extended due date given by Parliament in the light of the ongoing COVID-19 pandemic.
It then, according to the IOL news site, approached the Companies and Intellectual Properties Commission, to postpone the annual general meeting set for December.
Denel last held an annual general meeting in September 2019. It is required by its memorandum of incorporation to schedule the key meeting at least once a year but not less than 15 months after the previous one.
Denel said it wanted the annual general meeting postponed because Auditor-General Tsakani Maluleke’s office had not finalised its audit and its annual financial statements were not ready.
In a ruling earlier this week, the Commission found although Denel did not explain why Maluleke’s office was unable to complete the audit, its grounds were based on “a hurdle beyond the purview of its control”.
Companies Tribunal member Ishara Bodasing was satisfied Denel should be granted an extension to convene the annual general meeting on or before 31 March this year.
In its just released annual report Denel announced a revenue decline of almost 20%, from R2.73 billion to R3.41 billion as liquidity constraints forced it to battle with low funds to meet operational requirements.