Dipo Olowookere
By Dipo Olowookere
Shareholders of Cornerstone Insurance Plc have the opportunity to increase their stake in the company following the decision to offer bonus shares to them.
At the Annual General Meeting (AGM) of the organisation held last week in Lagos, it was agreed that investors should be allotted the bonus issue at a ratio of 7 to 30.
According to the resolutions passed at the gathering, investors, whose names appear on the company’s register of members at the close of business on Wednesday, August 12, 2020, should be given seven new shares of 50 kobo each for every 30 existing shares of 50 kobo each held by them.
This, according to the insurer, would be taken care of through N1.718 billion in the company’s share premium account, which would be transferred to the share capital account.
Cornerstone Insurance said the amount transferred will represent the value of 3.500 billion ordinary shares of 50 kobo each as fully paid up.
Also, these distributed shares “shall rank pari pasu with the existing shares in all respect and will be treated for all purposes as capital and not as income.”
At the AGM, shareholders approved that in line with Section 102 of the Companies and Allied Matters Act, Cap C20 Laws of the Federation of Nigeria 2004 (CAMA), the organisation’s authorised share capital be increased from N7.500 billion divided into 15.000 billion ordinary shares of 50 kobo each to N9.250 billion divided into 18.500 billion ordinary shares of 50 kobo each by the creation of additional 3.500 billion ordinary shares of 50 kobo each.
This increase in the share capital, according to the shareholders, must be registered by the board with the Corporate Affairs Commission (CAC) in one or more tranches, series or proportions, and on such terms and conditions and in such circumstances as may be required of or determined by the board, provided that the total authorised share capital does not exceed 18.500 billion ordinary shares of 50 kobo each.
Business Post reports that shares of Cornerstone Insurance traded flat at 56 kobo at the Nigerian Stock Exchange (NSE) on Monday, with 48,500 units worth N28,816 transacted in three deals.
