In compliance with the amendment of the Companies and Allied Matters Act, 2020, signed into law by the President, Major General Muhammadu Buhari (retd.), Caverton Offshore Support Group Plc says it has deleted about 1.65 billion ordinary shares that remained unissued as at December 23, 2022.
Shareholders at the Extraordinary General Meeting held in Lagos on Friday voted to support the decision of the Board of Directors.
According to Caverton’s registrar, Coronation Registrars Limited, 124 shareholders were physically present at the meeting while those who voted virtually represented 54.57 per cent of the total issued capital of the company.
Explaining the rationale behind the board’s decision, the Chairman of Caverton Plc, Mr Aderemi Makanjuola, who was represented by the chairman of the day and Non-Executive Director, Mr Bashiru Bakare, noted that the meeting was in line with Section 124 which stipulates that “no company shall have a share capital which is less than its minimum issued share capital”.
He told the shareholders that the company does not have more than six months from the commencement of CAMA 2020 to comply with the law.
A shareholder, Mr Sunny Nwosu, argued that shareholders could only benefit from the exercise by getting a bonus from the company, while urging the board to consider the interest of shareholders in taking such a decision in the future.
The leader of a shareholder group based in Ibadan, Tunji Bamidele, said consideration should have been given to other options apart from cancellation of the shares. He however said the decision was acceptable to him and other shareholders as he commended the financial performance of the company, hoping it would be better in the coming financial year. He urged the board to pay dividends to shareholders at the end of the current financial year.
Another shareholder, Martin Akinlade, corroborated Bamidele’s position, but also pledged his support to the decision of the board.
In attendance were Mallam Bello Gwandu, Ms Amaka Obiora, Mr Bashiru Bakare and Mr Olabode Makanjuola while Mr Aderemi Makanjuola, HRM King Edmund Daukoru, Mr Akinsola Fashola, Mr Akin Kekere-Ekun and Mr Raymond Iyhembe joined virtually.
The chief executive officer of the company, Mr Olabode Makanjuola, thanked the shareholders for their continued support.
He said the company was restructured for growth, adding, “Over the last 15 years, our sources of income are generated from chartered helicopters but we are expanding. Early this year, a 40-seater passenger ferry was locally built.”
Makanjuola, who expressed pleasure over the attendance of shareholders at the meeting, reiterated the company’s commitment to its shareholders and praised them for their unwavering support.
