WorldStage Newsonline– Cornerstone Insurance Plc, a company licensed and re-certified by the National Insurance Commission (NAICOM) to do both General and Life Insurance business has recommended a 23.33 per cent increase of it’s the authorised share capital from N7.5 billion for 15 billion ordinary shares to N9.25 billion for 18.5 billion ordinary shares of N0.50K each by which amounted to a creation of 3.5 billion additional ordinary shares.
This was part of the resolutions passed at the Annual General Meeting http://www.nse.com.ng/Financial_NewsDocs/31316_CORNERSTONE_INSURANCE_PLC-CORNERSTONE_INSURANCE_PLC-RE.pdf of the company held at AGIP Recital Hall Foyer, Muson Centre, Onikan, Lagos on Wednesday, August 26, 2020.
In a notification sent to the Nigerian Stock Exchange over the weekend, the meeting approved that bonus shares be issued to existing members of the Company, subject to the filing of the increase in Authorized Share Capital of the Company at the Corporate Affairs Commission.
Specifically, to pay for the bonus, N1,718,442,672 was approved to be transferred from the Company’s share premium account to the share capital account to represent the 3.5 billion ordinary shares of N0.50K each as fully paid up, and distributed amongst members whose names are registered in the Company’s Register of Members at the close of business on Wednesday, 12th August 2020, in the proportion of seven new shares of 50 kobo each for every 30 existing shares of 50 kobo each, held by them. The shares distributed shall rank pari pasu with the existing shares in all respect and will be treated for all purposes as capital and not as income.
Other resolutions at the meeting include the approval of the re-election of the retiring directors- Mr. Steve Iwenjora, Ms. Elizabeth Amadiume and Mr. Tokunbo Bello.
Cornerstone earlier released its earnings forecast for the fourth quarter ending 31 December 2020 https://www.worldstagenews.com/cornerstone-insurance-forecasts-38-92-profit-decline-in-q4-2020-against-q2-record/, saying its group hoped to earn a profit after tax of N611.111 million during the period.
