February 24, 2021 (MLN): The Economic Coordination Committee of the Cabinet has removed the cap on the distribution of dividend by Mari Petroleum Company Limited (MPCL).
In a notification to Exchange, MPCL said Petroleum Division has formally communicated that ECC of the Cabinet while considering a summary dated 03.02.2021 submitted by the Petroleum Division, has approved the removal of dividend distribution cap on MPCL.
The decision of the ECC was later ratified by the Federal Cabinet on 09-02-2021. The main points of the ECC decision are as under:
- Dividend distribution cap on under executed Gas Price Agreement (GPA) may be removed w.e.f July 01, 2020.
- The Company would ensure dividend distribution in accordance with the provisions of the Companies Act 2017 (amended through the Companies Amendment Act,2020) and the Companies (Distribution of Dividends) Regulations, 2017.
- Appropriate amendments in Clause 6.6 of the GPA would be made pursuant to (i) and (ii) above through a Supplemental Agreement to the GPA.
A Supplemental Agreement to Mari GPA 2015 will be signed in due course to implement the above-mentioned ECC decision, company’s notice to PSX revealed.
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