Caverton shareholders back cancellation of 1.65 bn unissued shares

In compliance with the amendment of the Companies and Allied Matters Act (CAMA 2020), signed into Law by President Muhammadu Buhari, recently, Caverton Offshore Support Group Plc, has deleted about 1.65 billion ordinary shares that remained unissued as of December 23, 2022.

Shareholders at the Extraordinary General Meeting (EGM) held in Lagos recently, voted to support the decision of the Board of Directors.

According to Coronation Registrar Limited, registrar to Caverton, 124 shareholders were physically present at the meeting while those who voted virtually represented 54.57 percent of the total issued capital of the company.

Explaining the rationale behind the decision by the Board of Directors of Caverton, the Chairman of Caverton Plc, Mr Aderemi Makanjuola who was represented by the chairman of the day and Non-Executive Director, Mr Bashiru Bakare, noted that the meeting was in line with Section 124 that stipulates that no company shall have a share capital which is less than its minimum issued share capital.

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He told shareholders present at the meeting that the company does not have more than six months from the commencement of CAMA 2020 to comply with the law.

Sunny Nwosu, a shareholder, noted that the life of any company evolves around issuing capital, paying bonus and dividend. He argued that shareholders can only benefit from the exercise by getting a bonus from the Company. He urged the Board to consider the interest of shareholders in taking such decision for the future.

Tunji Bamidele, leader of a shareholder group based in Ibadan said consideration should have been given for other options apart from the cancellation of the shares. However, the decision was acceptable to him and other shareholders.

Martin Akinlade, another shareholder, corroborated Bamidele but also pledged his support for the decision of the Board.

In his brief remarks, the Chief Executive Officer of the company, Olabode Makanjuola thanked the shareholders for their continued support for the company.

According to him, the company is restructuring for growth. “Over the last 15 years, our sources of income are generated from chartered helicopters but we are expanding. Early this year, a 40 seaters passenger ferry was locally built”