Sugal & Damani approves merger of group companies

Sugal & Damani Finlease Ltd has announced that the Board of Directors of the Company at its meeting held on May 29, 2007, inter alia, has given in principle approval to the proposed merger of the following Companies in the group with the Company:

1. Sugal & Damani Share & Stock Brokers Pvt Ltd.

2. Sugal & Damani (Chennai) Share Broking Ltd.

3. Sugal & Damani Securities (Madras) Pvt Ltd.

The merger scheme will be subject to the approval of Stock Exchanges, shareholders of the Company and the Hon'ble High Court of Madras.

The Board has also approved the proposal to appoint Mr. N R Sridharan, Partner, M/s. Sarathy and Balu, Chartered Accountants, Chennai, to prepare a report on valuation of Shares, determine swap ratio and draft merger scheme. Once the scheme is ready, it will be placed before the Board for approval.

The Board has also approved the appointment of Mr. P H Arvindh Pandian, Advocate, Chennai, to appear for the Company before High Court of Madras in connection with the Company's application to the High Court seeking directions for holding shareholders meeting and the Company's petition to the High Court of Madras for getting Court approval.

In view of the proposed merger, Object Clause in the Memorandum of the Association is proposed to be altered by Postal Ballot. The Board has appointed Shri. J P Mundhara, Practising Company Secretary, Chennai to act as Scrutinizer to conduct the Postal Ballot.

Source : Equity Bulls

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