The Security Exchange Commission of Pakistan (SECP) has allowed United Bank Limited (UBL) to issue up to 59 million shares against conversion of Term Finance Certificates (TFC’S). This will be other than the right offering of UBL.
The apex regulator has allowed the aforesaid on the basis of a special resolution passed by shareholders of the Bank in the Annual General Meeting (AGM), as well as disclosures and circumstances of the case presented to the Commission.
The approval however, is subject to the following conditions:
It further quoted that in case of any conflict regarding the terms of TFC or conversion, the Bank shall not take any decision that is contrary to the disclosures made to the shareholders and the Commission, and applicable laws.
If there will be any change or material information regarding the subject conversion of TFC’s or effecting circumstances of the subject case shall be communicated to the SECP immediately
It is the responsibility of the United Bank to ensure that it continues to comply with all the relevant legal requirements and obtains regulatory approvals with respect to the issuance of shares, as may be applicable at the relevant time.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan