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Karachi, In an upcoming Extraordinary General Meeting (EGM) scheduled for June 21, 2023, Reliance Cotton Spinning Mills Limited will propose a significant alteration to its Articles of Association. The proposed amendment aims to introduce the issuance of fully paid bonus shares to shareholders, allowing the capitalization of moneys, investments, and other assets standing to the credit of the Reserve Fund or in the hands of the company.
The Board of Directors of Reliance Cotton Spinning Mills has put forward this proposal in accordance with the Companies (Further Issuance of Shares) Regulation 2020, seeking alignment with the latest regulations governing share issuances. The proposed resolution, outlined in an addendum to the notice of the EGM, will be presented as a special resolution to the shareholders.
If passed, the amendment would substitute the existing Article 99 of the company’s Articles of Association, enabling the directors to capitalize funds available for dividends or representing premiums received from share issuance. The capitalization would be achieved through the issuance of fully paid bonus shares to the company’s shareholders.
This strategic move aims to enhance shareholder value and provide an opportunity for investors to benefit from the company’s growth and success. The proposed amendment reflects Reliance Cotton Spinning Mills’ commitment to aligning its governance practices with current regulations while fostering a favorable environment for shareholders.
The EGM is expected to draw considerable attention from shareholders and investors who are keen on understanding the potential implications of this proposed amendment.