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Karachi: In a significant corporate restructuring, MCB Bank Limited announced the approval of a scheme for the transfer of several branches to its fully owned subsidiary, MCB Islamic Bank Limited, following resolutions passed in an extraordinary general meeting on July 6, 2024.
The certified resolutions detailed a scheme of compromises, arrangements, and reconstruction that will involve the transfer of banking business including assets, liabilities, and operations of 39 branches of MCB Bank Limited to MCB Islamic Bank Limited. This restructuring is aimed at consolidating and enhancing the operations of MCB’s Islamic banking segment.
According to information available from the Pakistan Stock Exchange (PSX), the shareholders approved the scheme as presented, which includes all rights and obligations pertaining to the transferred branches, formally known as the ‘Demerged Undertaking’. This decision is aligned with the provisions of the Companies Act, 2017, and is subject to modifications or conditions that may be imposed by the Lahore High Court.
The resolutions empower the President & CEO, the Company Secretary, and the Chief Financial Officer of MCB Bank Limited, individually, to take necessary steps for the effective implementation and completion of the scheme. This strategic move is expected to streamline MCB Bank’s operations and focus more comprehensively on Islamic banking services.
The extraordinary general meeting and its resolutions comply with Rule No. 5.6.9 (b) of the Rule Book of Pakistan Stock Exchange Limited, ensuring transparency and regulatory adherence throughout the restructuring process.