Thursday, March 28, 2024

Caverton shareholders support cancellation of company’s 1.65bn unissued share capital

BY BAMIDELE FAMOOFO

In compliance with the amendment of the Companies and Allied Matters Act (CAMA 2020), signed into Law by President Muhammadu Buhari, recently, Caverton Offshore Support Group Plc, has deleted about 1.65 billion ordinary shares that remained unissued as at December 23, 2022.

Shareholders at the Extraordinary General Meeting held in Lagos on Friday, voted to support the decision of the Board of Directors.

According to Coronation Registrar Limited, registrar to Caverton, 124 shareholders were physically present at the meeting while those who voted virtually own 54.57 percent of the total issued capital of the Company.

According to the law, owners of 25 percent of the total share capital of the Company are eligible to ratify the decision.

Explaining the rationale behind the decision by the Board of Directors of Caverton, the Chairman of Caverton Plc, Aderemi Makanjuola noted that the meeting was in line with Section 124 that stipulates that no company shall have a share capital which is less than its minimum issued share capital and requires that every company with issued shares.

He told shareholders present at the meeting that the company does not have more than 6 months from the commencement of CAMS 2020 to implement the law.

Sunny Nwosu, a shareholder, noted that the life of any company evolves around issuing capital, paying bonus and dividend.

He argued that shareholders can only benefit from the exercise by getting a bonus from the Company.

He urged the Board to consider the interest of shareholders in taking decision.

Cancelling of shares is a pain on the neck of shareholders.

Tunji Bamidele, leader of a shareholder group based in Ibaban said consideration should have been given for other options order than cancellation of the shares.

Martin Akinlade, another shareholder, was not pleased with the cancellation arrangement but pledged his support for the decision of the Board.

He commended the financial performance of the company, hoping that it will better in this financial year.

He urged the Board to pay dividend to shareholders at the end of the ongoing financial year.

In his brief remarks, Chief Executive Officer of the company, Olabode Makanjuola thanked the shareholders for their continued support for the company.

According to him, the company is restructuring for growth.

“Over the last 15 years, our sources of income are generated from chartered helicopters but we are expanding. Early this year, a 40 seaters passenger ferry was locally built”.

Makanjuola reiterated the company’s commitment to its shareholders by with their unrelenting effort to be a profitable company.

The chairman expressed pleasure over the attendance of shareholders at the meeting.

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