June 23, 2023 (MLN): The shareholders of Mari Petroleum Company Limited (MPCL) on Friday resolved the proposed amendment in Article 16 of the Articles of Association pertaining to the company's ability to purchase or acquire its own shares and the restrictions associated with such transactions.
Accordingly, the company may purchase or otherwise acquire its own shares as this allows the company the authority to buy back its own shares from shareholders or acquire them through other means, subject to compliance with applicable corporate laws and regulations.
In addition, the company is prohibited from purchasing or acquiring the shares of its holding company (if it has one). This restriction is a precaution that the company does not acquire ownership or control over its own parent company.
Meanwhile, the company is prohibited, unless permitted by Sections 86 and 87 of the Act (referring to relevant legal provisions), from providing any form of financial assistance to individuals or entities for the purpose of or in connection with their purchase or subscription of shares of the company or its holding company.
MPCL is also forbidden from providing loans to individuals or entities with the shares of the company or its holding company as security.
