October 11, 2006 (LBO) – Sri Lanka’s Sampath Bank Ltd is seeking shareholder approval to raise it’s authorise share capital and lift the maximum shareholder limits to be on par with Central Bank guidelines. The bank’s authorised share capital stands at 1.5 billion rupees and the board is seeking shareholders’ consent through an extraordinary meeting to raise the capital limit to 5.0 billion rupees, Sampath’s Company Secretary, S Sudarshan said Wednesday.
Shareholders are due to meet on November 2 to vote on these issues.
In March, the bank had to adjourn their EGM, as shareholders sought extra time to discuss a proposal to amend the Articles of Association, which restricts an investor from owning more than 5-percent of the Sampath.
Under the current Banking Act, the Central Bank restricts single ownership to 10 percent.
Sudarshan says Sampath also needs to amend its restrictive shareholder limit to stay in line with Colombo Stock Exchange listing rules and Securities & Exchange Commission regulations.
“The SEC has, during the past three years, been pressing your company to delete the clause in the Articles of Association relating to the 5-percent restriction,” Sampath said i