Shurwid Ind decides to reduce paid-up capital

The shareholders of Shurwid Industries Limited Thursday approved a resolution to reduce the company's paid-up capital.

The company took the decision to reduce its accumulated loss and enhance its capacity so that it could recommend dividends.

Execution of the decision is, however, subject to approval by a competent court as per the Companies Act, 1994.

According to a company disclosure, the special resolution was approved 'unanimously' in its 13th AGM (annual general meeting).

As per the approval, the company would reduce the paid-up capital at a ratio of 5:2 (two shares against existing five shares of Tk 10 each).

Earlier, the company's board of directors had decided to reduce the paid-up capital at a ratio of 5:3 (three shares against existing five shares of Tk 10 each).

The company's present paid-up capital would then stand at Tk 312.91 million, after a deduction to the tune of above Tk 208.61 million, to be divided into 20.86 million ordinary shares.

The company explained that reduction of the paid-up capital would help increase the earnings per share (EPS) and the accumulated loss would be reduced.

The company will declare the record date after the approval from the court and the authorities concerned.

Shurwid Industries, a 'Z' category company, was listed with the stock exchanges in 2014. The company had last recommended 15 per cent stock dividend in 2014.

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