Lanka Century Investments proposes Rs. 2.5 b capital reduction to wipe off retained losses

Tuesday, 20 February 2018 00:05 - - {{hitsCtrl.values.hits}}

Lanka Century Investments PLC Board of Directors has resolved to propose a Rs. 2.54 billion capital reduction initiative.

The Company said it has a carry forward loss of Rs. 2.539 billion as at 31 March 2017 and the losses adversely affect the ability to pay a dividend to shareholders. In terms of the Companies Act of 2007, the solvency test requirements have to be satisfied prior to any dividend distribution in the future. Due to these reasons the Directors have proposed that the Stated Capital be reduced to wipe off the carry forward losses. It is proposed to reduce the stated capital from Rs. 7.87 billion to Rs. 5.33 billion.

The move is in accordance with the provisions of Section 59 of the Companies Act and the Company’s Articles of Association and is subject to shareholder approval via an EGM.

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