Chapter 5

http://www.businessdailyafrica.com/Company%20Industry/AccessKenya%20stirs%20speculation%20with%20AGM%20push%20back/-/539550/911522/-/5w6ewe/-/

SUMMARY
AccessKenya, an internet firm had its annual general meeting postponed due to problems with the cash-flow. Many shareholders were confused as the meeting is now pushed to August 31. AccessKenya claims the Company Act of Kenya states that general meetings are to be held 15 months within one and other. Therefore, delaying this year's meeting to August still obeys the Company's act. The postponement also means the trouble of taking more time to divide payments which requires the approval of shareholders. In last year's meeting held in December 2009 the financial statements show that AccessKenya had a negative cash-flow as the position dropped from 2008. The internet firm states that the, "Investment was very high this year (2009)..."

CONNECTION
This article, "AccessKenya stirs speculation with AGM push-back" found in Business Daily relates to Chapter 5 in our Financial Accounting textbook mainly due to the importance of the cash-flow statement. Near the end of this chapter, it is stressed on how the information obtained from the cash-flow is vital for a business to be successful. We learn that the cash-flow is the "lifeblood" of the company as it determines it the company will survive or die in the long run. Therefore as the internet firm, AccessKenya faces cash-flow issues, it creates major problems for the company. As investors understand the importance of the cash-flow, they will obviously question the company's progress.

REFLECCTION
As AccessKenya is unable to attend its annual general meeting, due to problems with their cash-flow it is currently causing quite a few problems to both the company and their shareholders. Personally, if I too were a shareholder I would be confused and question the company's reliability. A company like AccessKenya would be thought not to have problems getting all financial statements ready for a huge meeting like the annual general meeting. It is especially looks bad for AccesKenya as their cash-flow was negative last August compared to their cash-flow in 2008, and now currently they are unable to present one of the most important piece of financial statement. Hopefully the internet firm will learn from this mistake and make sure it will never happen again as the postponement caused confusion to their shareholders, created a more complicated process to make dividend payments, and lastly ruined their reputation.