Business
Capital Reorganisation
Capital Reorganisation.
About this update from Alumasc Group Plc
[{"type":"text","content":"\n Alumasc Group PLC\n04 May 2007\n\n\nThe Alumasc Group plc\n\n4 May 2007\n\n\n\n THE ALUMASC GROUP PLC (the \"Company\")\n\nProposal for the cancellation of the Company's share premium account and capital\n redemption reserve\n\n\n1 Introduction\n\nThe board of the Company is proposing to seek shareholder approval at an\nextraordinary general meeting, of the Company to be held at 10.00 a.m. on 30 May\n2007 at the offices of Wragge & Co LLP at 3, Waterhouse Square, 142 Holborn,\nLondon, EC1N 2SW for the cancellation of the Company's share premium account and\ncapital redemption reserve. This will involve applying to the High Court for the\nreduction of the share premium account and capital redemption reserve. The board\nbelieves that the increase in the Company's distributable reserves, achieved by\nthe proposed cancellations, will assist with the maintenance of the Company's\ncurrent dividend policy and, consequently, the marketability of the Company's\nshares as well as allowing a more efficient utilisation of the Company's reserve\naccounts.\n\n2 Reasons, effect and benefits of the board's proposal\n\nThe Company currently has a balance on its share premium account of £28,538,881\nwhich has arisen as a result of various prior issues by the Company of its\nshares at prices in excess of their nominal value. The Company currently also\nhas a balance on its capital redemption reserve of £693,352 which has arisen as\na result of prior purchases by the Company of its own shares out of\ndistributable profits. Under the Companies Act 1985, a company's share premium\naccount and capital redemption reserve constitute non-distributable reserves of\na company and the sums credited to those reserves are not distributable to\nshareholders.\n\nThe Company's articles of association and the Companies Act 1985 permit the\nCompany to cancel its share premium account and capital redemption reserve in\nappropriate circumstances provided the Company resolves by special resolution to\ndo so and if subsequent confirmation of those cancellations is given by the High\nCourt of Justice.\n\n\nThe reserve which arises as a result of the cancellation of those reserves can\nthen be transferred to the Company's distributable reserve account as\nrepresenting realised profit except to the extent that, and for so long as, the\nCompany has undertaken tha...