Due to the disagreement, ordinary shareholders are deprived of getting dividend since the last five FYs. Moreover, the company that is earning millions in income has not been able to conduct AGM for ages.
Failure in conducting AGMs has halted the process of appointing board of directors in the company as the BOD member required to be appointed through AGM. The vacant seats in BOD has restricted the company from carrying out regular tasks, dissemination of information to pubic, submission of regular report to regulatory bodies and others.
The company has not conducted AGMs since the FY 2071/72. It called out AGMs of two FYs 2071/72 and 2072/73 however, due to dispute between directors and shareholders; the AGM was ended in midway without any result. Since then, it has not called any AGM for any FYs.
Meanwhile, the company informed that it will soon conduct AGMs of FY 2071/72 to 2074/75 within a month period. Given that the auditing of FY 2075/76 has not been completed it will be difficult to conduct AGM of FY 2075/73, said a source.
Most importantly, the AGM should be able to end the property dispute between the government and the company. Previously, the government claimed that out of 12 ropanies and 4 aanas of the land where Bishalbazaar stands, eight ropanies belongs to it. Supreme Court has also given order in favor of the government three months ago. The court ordered the company to set its share structure considering the valuation of the land. The court also ordered the company to endorse the decision of share structure through its AGM. As per the order, the valuation of the government land is at Rs 3.96 billion.
Ordinary shareholders of the company, however, claimed that the company failed to do valuation of the remaining 4 ropanies of land owned by Bishalbazaar.
Presently, the company has a paid-up capital of Rs 50 million in which, the ordinary shareholders owns 57 percent of capital worth Rs 28.5 million and the remaining 43 percent worth Rs 21.5 million is owned by ‘others’.
With the valuation of land owned by the government the paid-up capital of the company will reach Rs 4.01 billion. After adjusting the value of land in the paid-up capital, the government will own 98.75 percent of the total share while the ordinary shareholders will have 0.71 percent and ‘others’ will have 0.53 percent.
In this way, the share ownership of ordinary shareholders will fall to 0.71 percent from the current 57 percent. Obviously, this is a great concern for the ordinary shareholders of the company which needs to be address by upcoming AGM.
