The Afre Corporation management has resolved to suspend the scheduled extraordinary Annual General Meeting in an act that has been viewed as a move to avoid a possible suspension from trading on the Zimbabwe Stock Exchange.

The insurance firm, which was facing a possible suspension from the local bourse if it had proceeded with the AGM decided to postpone the meeting to pave way for the ongoing investigations by KPMG on alleged irregularities at the firm.

In a telephone interview with ZBC News, Afre Corporation Board Chairman, Mr Tawanda Nyambirai noted that the company’s management resolved to comply with a combined statement issued by the Insurance and Pensions Commission together with the Securities Commission of Zimbabwe.

The suspension of the meeting by Afre Corporation means that the proposed endorsement of the US$15 million right issue will be delayed.

The right issue was meant to address financial requirements of subsidiary units of the insurance group.

Observers have however questioned the move amid allegations that the arrangement is intended to advance the interest of some of the shareholders eager to increase their stake in the group.

The Securities Commission of Zimbabwe had argued that the proposed meeting should not go as planned, saying the move posed potential prejudice to policy holders and minority shareholders.