Cornerstone Insurance to recapitalise N1.72 bln via bonus shares
Shareholders of Cornerstone Insurance PLC have approved the distributions of bonus shares in the ratio of seven to 30 existing shares each to all members of the company.
The approval for the bonus share was part of resolution at the last Annual General Meeting (AGM) of the company to capitalised N1.72 billion from the company’s share premium account.
“That Bonus shares be issued to existing members of the Company, subject to the filing of the increase in Authorized Share Capital of the Company at the Corporate Affairs Commission,” the company said on Friday.
The bonus shares will be distributed among “members whose names are registered in the Company’s Register of Members at the close of business on Wednesday, 12th August 2020,” the company said in a regulatory filing on Friday with the Nigerian Stock Exchange (NSE).
“That pursuant to the recommendation of the Directors, the sum of One Billion, Seven Hundred and Eighteen Million,
Four Hundred and Forty-Two Thousand, Six Hundred and Seventy-Two Naira (₦1,718,442,672) be transferred from
the Company’s share premium account to the share capital account.
“The amount transferred shall represent the value of Three Billion, Five Hundred Million (3,500,000,000) ordinary shares of Fifty Kobo (N0.50K) each as fully paid up, and distributed amongst members whose names are registered in the Company’s Register of Members at the close of business on Wednesday, 12th August 2020, in the proportion of seven (7) new shares of 50 kobo each for every thirty (30) existing shares of 50 kobo each, held by them. The shares distributed shall rank pari pasu with the existing shares in all respect and will be treated for all purposes as capital and not as income,” the company said.
“That the Directors be and are hereby authorised to do all acts and things and to approve, sign and/or execute all
documents, appoint such professional parties and advisers, seek approval and comply with the directives of the
relevant regulatory authorities, perform all such other acts and do all such other things as may be necessary or
incidental to, or deemed appropriate to giving effect to the above resolutions without being required to seek any
further consent or approval of the members or otherwise to the end and intent that the members shall be deemed
to have given approval thereto expressly by the authority of the above resolutions,” the company stated.