Soap manufacturer Blue Power Group is looking to amend its articles of incorporation to allow for a maximum of 10 directors at its upcoming extraordinary general meeting (EGM) to be held on May 2 at the Serengeti Hope Zoo.

The company currently has eight directors and is chaired by the top shareholder Dr Dihru Tanna. Dr. Tanna will retire as chairman of the board on April 30 while company mentor and director Jeffrey Hall is appointed chair on May 1. The original release to the Jamaica Stock Exchange (JSE) stated that the EGM would be done to discuss changes to the company’s organisational structure. However, the official notice only shows one resolution to expand the board limit.

Blue Power lost its ability to export to the Caribbean Community (Caricom) following the ruling of the Council for Trade and Economic Development (COTED) in November 2020 in favour of its Dominican rival Dominica Coconut Product Successors Limited (DCPS). DCPS had argued about unfair competition when Blue Power and other Jamaican producers imported soap pellets from Indonesia which was reshaped as soap but had not gone through a process of manufacturing transformation. This resulted in Blue Power’s soap products no longer being eligible to gain certificates of origin which protected it from the 40 per cent external tariff normally applied to products outside of the region and being imported into different Caricom countries. DCPS also initiated a lawsuit against Blue Power and four government agencies regarding the matter last year. The case is ongoing in the Supreme Court of Jamaica.

Blue Power is aiming to defend its legal rights to export in the international markets especially Caricom. It is currently making capital investments to increase the value added for its soap manufacturing with an ultimate aim to install saponification equipment for the production of soap pellets.

Since losing the export market, Blue Power’s management has been looking at means to diversify its business operations and bring in additional income to the company. It entered into an agreement during the second quarter to acquire an additional property in front of its 4 Victoria Avenue complex. Blue Power also entered into soap manufacturing agreements with leading brands in order to expand its sales in the Jamaican market. This commenced in the third quarter.

The company sold the property currently being used by Lumber Depot Limited in Papine for $127.60 million in the Q2. It received $54 million through its Cotrade Limited subsidiary in Q3 for the property. Blue Power also earns income from the provision of shared services to Lumber Depot. Blue Power’s third quarter (November–January) revenue declined by 12 per cent to $135.42 million while net profit slipped by 72 per cent from $33.04 million to $9.33 million.

Lumber Depot expanded its board seat capacity from six to eight at its October EGM which was immediately filled by Paul B Scott and Melanie Subratie who joined the board on December 13.

Access Financial Services Limited was the other company to recently amend its articles to expand its board from a maximum of seven to eleven at its September 9 annual general meeting. The board is chaired by founder and Executive Chairman Marcus James. Christopher Williams resigned from the board on January 27 with Nerisha Davis Farquharson taking his role as the shareholder director for Proven Investments Limited.