Precision Containers to Pay Maharashtra State Financial Corporation Rs.1.2 Crores

Precision Containers Ltd has announced that the Company has obtained for One Time Settlement from Maharashtra State Financial Corporation to the tune of Rs 1.20 crores.

In addition to this the Hon'ble BIFR Order dated March 08, 2006 has catergorically allowed the Company to pay the dividend by exempting the Company from the operations of Section 166, 169 and 205 respectively of the Companies Act 1956.

The Dividend amount constitutes at the rate of 10% (including arrears) on 2% Cumulative Convertible Preference Shares of Rs 10/- standing at Rs 3596000. Section 166 referred to above deals with dividend declaring authority being the Annual General Meeting only. Section 169 deals with calling Extra-Ordinary General Meeting to get approval for Preferential Allotment Issue from shareholders. Section 205 deals with payment of dividend out of profits only.

The Company has been exempted categorically from the operations of all the above Sections in addition to SEBI Guidelines and payment of Corporate Income Tax on dividend.

Source : Equity Bulls

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