Kathmandu: The shareholders of Shikhar Insurance Company are expected to receive 16 percent stock dividends from the accumulated profits up to the financial year 2078-79. The meeting of the board of directors (BODs) held on Magh 3, 2079, had announced the 17th and 18th AGM to be held on Magh 25, 2079.
The BODs will submit the proposal to distribute 16 percent stock dividends from the accumulated profit and reserve fund until the end of Asar 2079. The company will distribute stock dividends worth Rs. 36,57,72,992. Likewise, the proposal of 0.8421 percent cash dividends for tax purposes of stock dividends and cash dividends will also be forwarded to the AGM for endorsement. While distributing bonus shares, in the case of fractional shares, the issued capital and paid-up capital will be revised so as to convert the fractional shares to the nearest higher digit and thereby maintain share ownership.
According to clause 12B of the company’s Article of Association(AoA), the clause regarding the representation of public shareholders in the BODs will be amended. The company has proposed to increase the number of directors representing the public shareholders to 3 from the existing 2. Once amendments are made to the AoA, the BODs will include 3 members each from the public shareholders’ group and promoter shareholders’ group and an additional independent member will be appointed
Using the incentives provided by the Nepal Insurance Authority for the merger, the company is also going to submit a proposal to the AGM to authorize the BODs to take necessary decisions for merger or acquisition with any other general insurance company. SICL has a paid-up capital of Rs. 2.28 billion. According to the regulatory provision, a general insurer must maintain at least Rs.2.5 billion paid-up capital by the end of Chaitra 2079.