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Ceylon Hotels Corp to reduce capital to clear carry forward losses
on July 7, 2016 |
July 07, 2016 (LBO) – Ceylon Hotels Corporation has called an EGM in September to seek shareholder approval for the reduction of its stated capital to wipe off their carry forward losses.
The directors have proposed to reduce the stated capital of the company from 1.22 billion rupees to 198.5 million rupees while setting off a carry forward loss of 1.02 billion rupees.
“The losses adversely affect the Company’s ability to pay a dividend to its shareholders,” the company said in a stock exchange filing.
“Furthermore, the ‘Solvency Test’ requirements have to be satisfied prior to any dividend distribution in the future.”
The company had 171,825,401 ordinary shares and a carry forward loss of 1.02 billion rupees by the end of March 2016.
Are shareholder dividends the most important thing in this day and age where dividends are a thing of the past and the money should be reinvested in the company so that shareholders can see capital gains? Seems like an idiotic move, and the idiotic shareholders will give them the mandate to proceed.
3 days ago
Seems like this is an approach to sell off the entity for a lower consideration