The company has decided to see the approval of the shareholders to propose to convert the outstanding director loans into an equity, the company said, reporting to the Pakistan Stock Exchange (PSX).
The company is currently owed to its directors. 1.5 billion, and the proposed change will be in rupees. 49.42 per share, based on the average market price in the last three months.
According to the Chief Executive Officer, the move aims to strengthen the company’s capital. The project includes issuing new shares to directors in exchange for outstanding loans, but not through traditional rights.
During the board meeting, it was noted that most directors were considered “interested directors” under the Companies Act, 2017, and that was why the decision could not be parted. After the debate, the board unanimously vowed to submit the proposal to the company’s shareholders in a general meeting in accordance with legal requirements.
The approval of the shareholders will be sought according to the law before any change is occurred.