Business
Intended publication of a circular
Intended publication of a circular.
About this update from City Of London Investment Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4015U\n City of London Investment Group PLC\n 06 April 2021\n \n \n \n City of London Investment Group PLC (\"CLIG\")\n Intended publication of a circular\n Your Board has become aware of an issue in respect of the payment of certain historic dividends (the \"Relevant Distributions\"), which has resulted in a technical infringement of the Companies Act 2006 (the \"Act\").\n The issue is of an historic nature and there is no change to the financial outlook of the Company as a consequence of this technical matter. It is anticipated it will have no impact on the Group's dividend policy or dividend-paying capacity going forward. The Company's past accounts will not need to be restated and no dividends are expected to be repaid. \n The Act requires it to be demonstrated by reference to accounts filed at Companies House prior to payment that the Company has sufficient reserves to pay distributions at the time they are made. Whilst the Group has at all times had sufficient distributable reserves on a consolidated basis to pay the Relevant Distributions, these reserves had not always been distributed upward to CLIG, the holding company, from its operating subsidiaries at the time of declaration. In addition, interim accounts were not always filed with Companies House to show the availability of sufficient distributable reserves in respect of Relevant Distributions by CLIG. Regrettably, the Relevant Distributions were therefore not paid in strict accordance with the Act.\n \n As a result, the Group has been advised that, from a legal perspective, it may have claims against shareholders who were in receipt of these Relevant Distributions and against individuals who were directors at the time they were paid. The Company will therefore convene a general meeting at which it will put forward resolutions which will, if passed, address the situation and put all parties back in the position they were intended to be had the full technical requirements of the Act been complied with at the time the Relevant Distributions were made. The Board will set out full details of the Relevant Distributions in the circular to be posted to shareholders convening the general meeting. The steps being proposed are also in line with those taken by other listed companies that have encountered similar issues in the past.\n T...