Disa India completes Issue of bonus debentures

Disa India Ltd has announced that the Company has completed the process of issue of bonus debentures to the shareholders whose names appeared on the register of members on September 29, 2006. The bonus debentures have been issued pursuant to the recommendation by the Board of Directors in their meeting on August 15, 2006, as approved by the shareholders by postal ballot. At that meeting, the Board had, inter alia, proposed to issue and allot redeemable non-convertible bonus debentures to the shareholders whose name appeared on the register of members as on September 29, 2006. The bonus debentures were proposed to be issued by applying Rs 154,981,013 out of the amount standing to the credit of General Reserve, in the proportion of one such debenture of Rs 90/- each for every fully paid up share of Rs 10/-.

In the said meeting, the Board:

a. Resolved that the approval of the shareholders for the issue of bonus debentures be sought through a postal ballot; and

b. Authorised the Shareholders’ Grievances and Investor Relations Committee ('the Committee') of the Board to proceed with the issue and allotment of bonus debentures in case the shareholders approved the same.

Consequent to the meeting of the Board, the Company dispatched a notice and the related Explanatory Statement dated August 17, 2006, along with the postal ballot forms, to the shareholders.

The last date for the receipt of the completed postal ballots was September 27, 2006. The Committee thereafter met on October 05, 2006 and took on record the results of postal ballot, wherein, out of the total valid votes, 99.98% of the votes were cast in favour of the resolution. As a proportion of the total capital of the Company, the votes cast in favour of the resolution constitute 75.82%. Accordingly, the following Special Resolution for the issue of bonus debentures was considered passed by requisite majority:

Resolved that a sum of Rs 154,981,013/- out of the amount of Rs 158,697,240/- standing to the credit of General Reserve Account as at December 31, 2005 be applied for;

- allotment of Redeemable Non-Convertible Bonus Debentures ('Bonus Debentures') to the shareholders whose names appear on the Register of Members on September 29, 2006 the date of announcement of the result of the Postal Ballot; and

- the payment of dividend distribution tax thereon.

Source : Equity Bulls

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