WorldStage Newsonline-- The Board of Directors of Cutix Nigeria Plc rose from its 135th meeting held on Thursday July 13, 2017 with six resolutions for shareholders’ approval at its next Annual General Meeting (AGM).
The directors in a notice filed with the Nigerian Stock Exchange said the next AGM will come up on Friday, October 27, 2017 at Conv-Aj Events Centre, Nnewi.
Shareholders are expected at the AGM to adopt the 2017 Full year accounts approved by Directors and approve a recommended dividend of 18 kobo per ordinary share of the company.
The recommended dividend of 18 kobo higher than 16 kobo paid as dividend to shareholders in 2016.
The notice signed by the company’s secretary Ijeoma Oduonye stated that two directors, Dr. John Mbonu and Mr Ikechukwu Okonkwo will retire by rotation at the AGM.
While Mr. Mbonu will be presented for re-election, Oduonye noted that Barr (Mrs) Ogechukwu Maduka will be presented for election as a Director of the company also at the AGM.
Oduonye further stated that shareholders will be required to approve the directors recommendation of a 127 percent increase in the authorized share capital of the company from 880.7 million units to 2 billion units.
According to investment analysts, an increase in the total of capital stock showing on a company's balance sheet may be bad for investors, because it represents the issuance of additional stock shares, which dilute the ownership value of investors' existing shares. They, however, noted that the increase in capital stock may, in the long run, benefit investors in the form of increased return on equity through capital gains, an increase in dividend payouts or both.
Cutix Plc is a communication and energy wire and cable manufacturing which specialises in the manufacture of a wide-range of electrical wires and cables with exclusive high quality-patronized by the Power Holdings Company of Nigeria (PHCN).
The shares of the company were last traded on Friday at N2.38, 76 percent higher than its 52 week low of N1.35 per share.