Karachi: Arif Habib Corporation Limited (AHCL) is seeking a 30-day extension for holding its Annual General Meeting (AGM) and presenting its annual financial statements, originally due by October 28, 2024. This request arises as the company anticipates a judicial decision on a significant corporate restructuring involving its holding company and a subsidiary.

The restructuring, referred to as the Scheme of Arrangement, would see the demerger of non-core business segments from Arif Habib Limited and their amalgamation into AHCL. This scheme, approved by both companies’ boards in November 2023 and subsequently by shareholders and creditors, is currently awaiting final approval from the Sindh High Court, expected potentially by October 2, 2024. According to information available from the Pakistan Stock Exchange (PSX), the process has been informed by positive feedback from regulatory bodies, including a no-objection from the PSX itself.

The management of AHCL contends that finalizing the financial statements ahead of the court's decision would not reflect the post-restructuring state of the company accurately. Such premature disclosure might necessitate restatements, possibly leading to shareholder confusion and could impact dividend decisions based on incomplete data.

To comply with corporate governance regulations, AHCL has formally applied for the extension under the relevant provisions of the Companies Act, 2017, and the Companies (General Provisions and Forms) Regulations, 2018. This application includes submission of the last audited accounts, an affidavit from the CFO, and a paid challan as evidence of regulatory charges, showcasing the company's efforts to maintain transparency and regulatory compliance during this transitional period.

The request underscores AHCL’s careful navigation of complex legal and financial landscapes, aiming to ensure that all shareholder communications post-restructuring are both comprehensive and compliant with legal standards.