Mari Petroleum to recover tax by selling bonus shares of non-compliant shareholders

September 30, 2024 (MLN): The shareholders of Mari Petroleum who fail to pay the required income tax on their bonus shares will see their shares sold by the company to recover the dues, the company's filing on Monday revealed. 

In line with Section 236Z of the Income Tax Ordinance, Mari Petroleum will sell the bonus shares to recoup the tax amount paid on behalf of these shareholders.

This move will help to ensure compliance with tax regulations, and affected shareholders are advised to clear their dues to retain their shares.

"If the shareholder does not pay the income tax indicated above, the company will proceed to dispose of the bonus shares to recover the income tax amount that the Company paid on the shareholder’s behalf, in accordance with Section 236Z of the Ordinance," the statement reads.

Necessary instructions regarding this process are being sent to shareholders simultaneously, it added. 

To note, the 800% bonus issue, as approved by the shareholders of Mari Petroleum at the Annual General Meeting held on September 24, 2024, has been dispatched/credited 90% for filers and 80% for non-filers to both physical and CDC shareholders of the company on September 27, 2024. 

The withheld bonus shares will only be issued to shareholders upon the company’s collection of tax from the shareholder equivalent to 10% or 20%, as applicable, of the value of the bonus shares issued.

This amount will be determined based on the closing price on the first day of the book closure.

To recall, On August 08, MARI posted a profit after tax of Rs25.66 billion [EPS: Rs192.35] in the second quarter of 2024, an increase of 62% over the profit of Rs15.84bn [EPS: Rs118.72] in the same period last year (SPLY).

Along with the results, the company announced a final cash dividend for the year ending June 2024 at Rs134 per share.

This is in addition to the interim dividend already paid at Rs98 per share.

The company also recommended issuing bonus shares for the year, of 800% (eight shares for every one share held) from the capital redemption reserve fund and the balance from revenue reserves.

Copyright Mettis Link News