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|October 16, 1997||
Shareholders approve all resolutions
Shareholders of Reliance Industries Limited on Thursday voted in a majority to pass all the eight resolutions, including those pertaining to increasing the company's authorised capital, buy back shares, and increase the salaries of directors at the extraordinary general meeting in Bombay.
According to the resolution, the present authorised capital of Rs 10 billion is to be increased to Rs 22 billion in accordance with Sections 16 and 94 of the Companies Act 1958.
The increase in the company's authorised capital is proposed mainly to enable it to capitalise the company reserves by issue of bonus shares.
The shareholders approved the issue of bonus shares in the ratio of 1:1, which was announced in June last at the annual general meeting.
The issue of bonus equity shares to those who are foreign nationals or non-resident Indians, but which will require the permission of the Reserve Bank of India under the Foreign Exchange Regulation Act, 1973. The company will submit the necessary application to the RBI in due course.
The shareholders also approved a resolution, enabling the company to buy back shares and introduce an employees stock option scheme at the meeting.
The resolution permits a buyback of shares as long as it does not exceed 5 per cent of the total voting powers relating to the shares or other securities.
Company sources said the cost of the shares buyback at market price will be met out of the free reserves and/or the securities premium account and/or out of the proceeds of an issue specifically made for the purpose. The shares so bought back shall be cancelled forthwith.
Shareholders of the company also resolved a substantial hike in remuneration to the promoters, the Ambanis -- Dhirubhai, Mukesh and Anil -- and their associates, the Meswanis -- Nikhil and Hital.
In addition to the salary, the wholetime directors are also entitled to a commission of not less than 0.25 per cent of net profits, subject to an overall remuneration ceiling of 0.5 per cent of net profits.
The shareholders also approved a stock option scheme for the employees, officers and working directors of the company. The allotment will be in accordance with a scheme framed for the purpose.
The extraordinary general meeting agreed to issue preference shares to partly fund the company's expansion programme at Jamnagar in Gujarat.
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