Shareholders of Guinea Insurance Plc have backed decision of the firm to raise additional capital ahead of the June 30th, 2020 deadline given by National Insurance Commission (NAICOM) for firms to comply with its new capital regime.
The agreement was reached at its 61st Annual General Meeting, AGM, which held recently in Uyo, Akwa Ibom State where they embraced its recapitalisation plan to increase its capital base to N12 billion.
With the approval, the underwriting firm hopes to increase its Authorised Share Capital from N4,000,000,000 to N12,000,000,000 by the addition of the sum of N8,000,000,000 divided into 16,000,000,000 ordinary shares of 50 kobo each ranking in all respect pari-pasu with the existing shares of the Company.
In an opinion expressed by Chairman, Board of Directors, Barrister Godson Ugochukwu at the recently concluded meeting “the approval, as given by our perceptive shareholders, brings to the table, penetrating insights and sustainable fair shakes that will bolster our get-up-and-go capital structure reorganisation action plans. Options available to us are either to: approach the capital market by way of a public offer, private placements, rights issue, book building process or other methods; inject funds into the Company or consider the possibility of a merger with another company operating in the general insurance business portfolio. In any case, the Board had engaged the services of professional parties and advisors to provide matter-of-fact counsel that will engender accuracy and timely decision making especially, as we are materially mindful of the stipulated time frame given by the regulator”.
Industry analysts and business associates were enthralled by the wave of applause that followed the unanimous approval also given by shareholders of Guinea Insurance PLC for the re-election of Godson Ugochukwu, as Chairman, Board of Directors; Samuel Onukwue and Simon Bolaji as Non-Executive Directors. In like manner, Ademola Abidogun’s appointment as Managing Director/Chief Executive Officer was unanimously ratified by shareholders of the Company while also acknowledging his numerous years’ experience in providing strategic and operational leadership in uniquely challenging situations in the insurance industry.