Karachi, In a significant development, shareholders of a prominent company have approved a special resolution to increase the authorized share capital from PKR 120.00 million to PKR 14.00 billion. The decision was reached during the Extraordinary General Meeting held on Friday, June 23rd, 2023, at the company’s Registered Office in Karachi.
The members, granting their consent through a ballot paper voting process, endorsed the resolution, which also includes amendments to the memorandum and article of association. These changes will facilitate the implementation of the increased authorized share capital.
Furthermore, the Board of Directors was empowered by another resolution to capitalize the sum currently held in any reserve fund or reserve account of the company. This includes premiums received from shares or debenture issuance, as well as undivided net profits. The capitalized sum will be appropriately distributed among ordinary shareholders as bonus shares or debentures, with the distribution proportional to their existing holdings.
To ensure smooth execution, the Directors have been granted the authority to address any difficulties arising from this distribution. They may determine the value of fully paid-up shares or debentures, make cash payments to shareholders, or vest the shares or debentures in trustees for the benefit of the entitled parties. These measures aim to ensure fairness and efficiency in the allocation and distribution process.
In line with the Companies Act of 2017, the additional shares to be issued will carry equal voting rights and rank pari passu with the existing ordinary shares. This equal treatment aims to safeguard the interests and rights of all shareholders.
It should be noted that the alterations made to the company’s articles of association will be subject to any necessary amendments, modifications, additions, or deletions. However, such changes will not require fresh approval from the members in a general meeting.
To give effect to the resolutions, the Chief Executive Officer and/or Company Secretary of the company has been granted sole authorization to undertake all necessary steps. This includes executing legal and corporate formalities, as well as filing requisite documents with the Securities & Exchange Commission of Pakistan.
The shareholders’ overwhelming support for these resolutions demonstrates their confidence in the company’s future prospects and its ability to drive growth in the market. With the increased authorized share capital, the company is well-positioned to pursue strategic initiatives and expand its operations in the coming years.