NewsStocksGolden Carpets Ltd Seeks Shareholder Approval for Increased Borrowing Limits and Convertible LoanGolden Carpets Ltd Seeks Shareholder Approval for Increased Borrowing Limits and Convertible Loan
Golden Carpets Ltd has added two special resolutions to its 31st AGM agenda. The first proposes increasing borrowing limits to Rs. 15.00 crores under Section 180(1)(c) of the Companies Act, 2013. The second seeks approval for an interest-free unsecured loan of up to Rs. 5.00 crores from directors, with an option to convert into equity shares. These measures aim to enhance financial flexibility, meet working capital needs, and support business plans. Shareholders will vote on these resolutions through remote e-voting or at the AGM.
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Golden Carpets Ltd, a manufacturer of quality carpets, has announced significant additions to its upcoming 31st Annual General Meeting (AGM) agenda. The company's Board of Directors has approved two special resolutions that will be presented for shareholder approval, aimed at enhancing the company's financial flexibility and meeting its working capital needs.
Increased Borrowing Limits
The first resolution proposes to increase the company's overall borrowing limits under Section 180(1)(c) of the Companies Act, 2013. If approved, Golden Carpets Ltd will be authorized to borrow up to Rs. 15.00 crores, a substantial increase from its current limit. This move is designed to provide the company with greater financial leverage to support its business plans.
Convertible Loan from Directors
The second resolution seeks approval for raising an interest-free unsecured loan of up to Rs. 5.00 crores from the company's directors. This loan comes with an option for the lenders to convert the loan, either in part or in full, into fully paid-up equity shares of the company. This convertible loan structure could potentially strengthen the company's balance sheet while aligning the interests of the directors with those of the shareholders.
Rationale and Implementation
The Board of Directors cited several reasons for these proposals:
- To meet working capital requirements
- To manage financial obligations
- To support business plans
If approved, these resolutions will grant the Board flexibility in managing the company's finances. The conversion price of the loan into equity shares will be determined by the Board at the time of conversion, subject to compliance with applicable regulations.
Shareholder Voting
These new agenda items will be presented as Item No. 6 and Item No. 7 in the AGM. Shareholders can participate in the decision-making process through remote e-voting or by voting during the AGM itself.
Golden Carpets Ltd has emphasized that these measures are aimed at enhancing the company's financial position and operational capabilities. Shareholders will play a crucial role in determining the company's financial strategy as they vote on these resolutions at the upcoming AGM.
The company has made the full details of the addendum to the AGM notice available on its website, ensuring transparency and providing shareholders with comprehensive information to make informed decisions.
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