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May 14, 2007 (LBO) – A listed Islamic insurer said it was suspending a proposed bonus issue, while a shipping firm said it had sought legal advice on how to proceed after a new company law made bonus issues redundant. The new law does not recognize bonus issues, and firms that want to issue more shares to shareholders without getting money from them, now have to split shares.

Experts have said bonus issues declared before May 03, when the new company law came into effect but not ratified at that date would have to be abandoned and the process re-started as a share split.

Amana Takaful said briefly that it was suspending activities related to a bonus issue declared following a letter received from the Stock Exchange.

Mercantile Shipping said it first declared the bonus on February 15 but a shareholder meeting was postponed due to a lack of quorum.

A second meeting was called for May 07, but on a verbal communication from the Colombo Stock Exchange it had called the meeting off.

Mercantile Shipping told the Colombo Stock Exchange that it had sough legal advice on how to proceed further.

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