Dawood Lawrencepur Convenes EGM to Approve Stand-by Letter of Credit

Related Articles

Dry Weather to Prevail in Most Parts of Country: PMD

2 days ago

PM Directs Integration of Public-Private Partnership Authority to Expedite Development Projects

2 days ago

Karachi, Dawood Lawrencepur Limited has officially announced an Extraordinary General Meeting (EGM) set to take place on September 11, 2023. The meeting, to be conducted in Karachi and through a video link facility, is intended to address significant matters for the company.

The key agenda of the EGM focuses on special business matters, primarily the proposal for the issuance of a continuing Stand-by Letter of Credit (SBLC) with a cap of up to USD 10 million. This SBLC is intended to be in favor of the lenders associated with Tenaga Generasi Limited, a subsidiary company. The company aims to secure this credit arrangement in compliance with the provisions outlined in the Companies Act, 2017.

In order to pursue this course of action, the company seeks to pass a special resolution as required under Section 199 of the Companies Act, 2017. The resolution aims to grant approval for the acquisition of a continuing SBLC of up to USD 10 million. The credit facility will be extended by a bank to benefit the lenders of Tenaga Generasi Limited, a subsidiary of Dawood Lawrencepur Limited. This decision is made pursuant to the Sponsors Support Agreement established on March 11, 2015, involving Dawood Lawrencepur Limited, Dawood Corporation (Pvt) Limited, Tenaga Generasi Limited, and Citibank International Limited.

The special resolution under consideration is expected to remain valid for a period of three years from the date of approval by the members of Dawood Lawrencepur Limited. The resolution also empowers the Chief Executive Officer, Chief Financial Officer, and Company Secretary, either jointly or severally, to undertake all necessary actions and tasks pertaining to this matter.

The convening of this EGM demonstrates the company’s commitment to taking informed and strategic financial decisions that contribute to its operational stability and growth. The proposed SBLC stands as a testament to Dawood Lawrencepur’s ongoing efforts to manage its financial responsibilities and obligations effectively.

The post Dawood Lawrencepur Convenes EGM to Approve Stand-by Letter of Credit appeared first on Pakistan Company News.