Lahore: Kohinoor Spinning Mills Limited has announced significant corporate governance and structural changes following a recent board meeting. The changes, which include an increase in authorized share capital and amendments to the company’s Memorandum and Articles of Association, reflect a strategic shift towards business diversification.
During the meeting held on 07th August 2024 at the company's registered office, the Board of Directors decided to empower the CEO to explore and initiate proposals aimed at diversifying the business. This decision aligns with the company’s growth objectives and strategic direction for the future.
Additionally, the Board approved a revision of the company’s Memorandum of Association to align with Table B of the First Schedule of the Companies Act, 2017. Concurrently, Table A of the same schedule was adopted as the new Articles of Association, marking a comprehensive update to Kohinoor's corporate governance framework.
A significant financial decision was the increase of the authorized share capital from Rs. 2.2 billion, represented by 440 million ordinary shares at Rs. 5 each, to Rs. 3 billion, with 600 million ordinary shares priced at Rs. 5 each. This adjustment in share structure is poised to facilitate future capital raising activities and support the company's expansion efforts.
According to information available from the Pakistan Stock Exchange (PSX), these changes are expected to enhance Kohinoor Spinning Mills Limited’s position in the market by allowing more flexibility in operations and potential growth opportunities. The company has communicated these changes to the certificate holders of the exchange, ensuring compliance with regulatory requirements and transparency with stakeholders.