EFC Limited, a BSE listed leading real estate leasing and managed office solutions provider, announced that its Board of Directors approved several key corporate actions at a meeting held on December 27, 2024. These actions, subject to shareholder approval through a postal ballot, include a bonus share issue, an increase in authorized share capital, and the adoption of restated Articles of Association.
Bonus Share Issue: The Company will issue bonus shares in the ratio of 1:1, meaning one new fully paid-up equity share of Rs 2 for every existing fully paid-up equity share of Rs 2 held by eligible shareholders on a record date to be announced later. The bonus shares will be issued by capitalizing securities premium, general reserve, and/or retained earnings available as of March 31, 2024.
Increase in Authorized Share Capital: The Company will increase its authorized share capital from Rs 15 crore to Rs 25 crore. This will be achieved by altering the Memorandum of Association to reflect the issuance of new shares. The amendment to the Memorandum of Association of the Company increases the Authorized Share Capital from Rs. 15,00,00,000 (Fifteen Crore Only) to Rs. 25,00,00,000/- (Rupees Twenty-five Crores only). This increase is achieved by dividing the authorized share capital into 12,50,00,000 (Twelve Crore Fifty Lakhs) Equity Shares of Rs. 2/- (Two Rupee) each, up from the previous 7,50,00,000 (Seven Crore Fifty Lakhs) equity shares.
The Company's current Articles of Association are based on the Companies Act, 1956. Many provisions within these Articles reference specific sections of this older Act or contain regulations that are no longer compliant with the current Companies Act, 2013, and its associated rules.
To ensure compliance and improve internal governance, the Company proposes to replace the entire set of existing Articles of Association with a new set. This will align the Company's internal regulations with the latest legal framework.