SMC Enterprise launched
In October 20, 2014 the Registrar of Joint Stock companies approved the formation of SMC Enterprise, a wholly owned for-profit subsidiary of the Social Marketing Company. The Enterprise was launched to separate for- profit activities from SMC non-profit to be able to effectively manage a growing, diverse and complex operation. All manufacturing and trading operations are placed under the for-profit subsidiary while program operations, which are non-profit in nature, remain under SMC holding.
The following are the salient features of the new SMC after restructuring process:
* SMC Enterprise has been established as a wholly owned subsidiary of SMC non-profit.
* All operations under Enterprise are for-profit in nature; net profit earned by Enterprise (after taxes) and retained earnings are given out as dividends to the parent company SMC.
* Dividends are spent largely to expand and strengthen non-profit program operations in line with SMC’s overall Mission of improving the health and wellbeing of women, children and families.
* Both organizations are governed by separate Memorandum and Articles of Association.
* The Chairman of SMC Board also acts as Chairman of SMC Enterprise. The Board also consists of three incumbent Directors of SMC Board, and MD/CEO of SMC. The MD of Enterprise is an ex-officio member of the Board.
