Karachi, Shams Textile Mills Limited (STML) has made significant announcements following its recent Board of Directors meeting held in Lahore on May 29, 2023. The board has recommended a series of crucial decisions aimed at strengthening the company's financial position and corporate structure.
One of the major recommendations is to increase the authorized share capital of the company. Currently set at Rs. 250,000,000 divided into 25,000,000 ordinary shares of Rs. 10/- each, the proposed change aims to raise it to Rs. 1,000,000,000 divided into 100,000,000 ordinary shares of Rs. 10/- each. This increase will involve the addition of 75,000,000 ordinary shares, thus expanding the company's financial flexibility and potential for growth.
To implement this change, alterations are proposed for Clause V of the Memorandum of Association and Clause IV of the Articles of Association. The figures and words Rs. 250,000,000 (Rupees Two Hundred Fifty Thousand million) and 25,000,000 will be substituted with Rs. 1,000,000,000 (Rupees One Billion) and 100,000,000, respectively.
In addition, the Board has recommended amending Clause 81 of the Articles of Association concerning the capitalization of reserves. The proposed change would authorize the Board of Directors, rather than a General Meeting, to make decisions in this regard. The words "General Meeting" in Clause 81 would be replaced with "Board of Directors" to reflect this modification.
To discuss these crucial matters, an Extraordinary General Meeting (EOGM) has been scheduled for Thursday, June 22, 2023, at 11:00 a.m. The meeting will be held at 7-B-III, Marina Homes, Aziz Avenue, Gulberg-V, and Lahore. Members of the company are urged to attend this important gathering. The official notice of the EOGM will be sent separately.
To facilitate the necessary administrative processes, the share transfer books of Shams Textile Mills Limited will remain closed from June 15, 2023, to June 22, 2023, inclusive. This closure period will allow the company to make the required adjustments and ensure a smooth transition.